Surprising Number of Defined Contribution Plan Providers Lack Cyber Insurance

Excerpted from Pensions & Investments:

Mr. Reagan said the issue with [defined contribution] plan coverage is who at a company or governmental agency with a DC plan is responsible for obtaining the insurance.

“It's not necessarily a failure of them to understand that cyber is important; it's that they don't know that cyber is their problem,” Mr. Reagan said. “Maybe some [sponsors] do have checks, but have they asked (vendors) for credentials? … I think it's very easy for a board to ask if they trust a vendor and then move on. But a sponsor plan board is different than an ordinary employer board — there's a higher standard of care required with the plan board. It must be more rigorous.

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