Russia's federal government will reportedly force strategic industries to buy cyber-threat insurance

Russian regulators are planning to introduce compulsory insurance against cyber-threats for companies working in strategic industries, from the banking sector to engineering, according to the newspaper Kommersant.

The initiative is part of the federal government’s expansive “Digital Economy” program, which reportedly foresees the introduction of new industrial standards on mandatory audits of information security and required insurance against risks present in certain sectors of Russia’s economy.

The new requirements would apply to the banking sector, airports and train stations, and strategic industries like metallurgy, engineering, shipbuilding, and aircraft-building.

Federal officials are reportedly prepared to lower taxes to help businesses afford the new insurance expenses.

According to Kommersant, Russian businesses to date have purchased fewer than 20 cyber-threat insurance contracts, and most of these policies were acquired by companies with foreign shareholders from foreign insurers.

The current world market for cyber-threat insurance is reportedly $2.5 billion, and it’s expected to grow dramatically in the next several years.