Insurance looms large in cyber policy mix, with limited government role

The federal government has a limited role to play in encouraging the rapidly growing cybersecurity insurance market, according to sources from various industries, and is better suited to supportive functions such as improved information sharing and providing backstops against catastrophic losses in cyber attacks.

It remains to be seen how well insurance tools match up against the cyber threat environment, some sources said. But numerous sources said cyber insurance promises more bang for the buck than regulatory steps such as...