The US-based Risk and Insurance Management Society (RIMS) has backed two bills aimed at streamlining data breach notification and protecting organisations’ insurance investments.

Congress is considering the Data Security and Breach Notification Act, which would create a federal notification requirement following a cyber breach.

Also being deliberated is the Policyholder Protection Act, which would prevent federal regulators transferring the assets of state-regulated insurance companies to rescue failing non-insurance businesses.

RIMS President Rick Roberts says the bills could be legislative backstops “that allow risk professionals to achieve their objectives more efficiently and with greater confidence”.

“Reducing redundancies in the cyber-breach reporting process, as opposed to having to report them state by state, will allow risk professionals to assess the situation faster and implement more effective response plans,” he said.

“Risk financing is a staple of any risk management strategy and even the slightest chance that an organisation’s insurance investments might be lost due to a federal bailout or other financial discrepancies is not good for business.

“RIMS is pleased to see legislators address these critical issues and looks forward to lending its support to help successfully steer these bills through the approval process.”