The Federal Financial Institutions Examination Council warnedcredit unions and other financial institutions to think carefullyabout cyber insurance, according to a statement from the regulatortoday.

The regulator said that as more and more data breaches and securityincidents make headlines, credit unions and other financialinstitutions should gather the right people, do the right researchand make enough room in the budget if they're going to buy cyberinsurance, which typically protects against claims from members,partners or venders as a result of a data breach or other cyberincident at a financial institution.

“The FFIEC members do not require financial institutions tomaintain cyber insurance. The evolving cyber insurance market andthe shifting cyber threat landscape may, however, prompt financialinstitutions to consider whether cyber insurance would be aneffective part of their overall risk management programs,” itsaid.