Wednesday, April 16, 2014

Lloyd's of London wouldn't insure half of the power grid

From the LA Times here:

Some members of Congress want to empower regulators to force specific security upgrades at utilities. Others are attacking whistle-blowers and the media, demanding an investigation into disclosures of how easily the country's power grid could be shut down.

The magnitude of the problem is underscored by concerns raised by insurance giant Lloyds of London, which is known for a willingness to insure pretty much everything.

Lloyds' appraisers have been making a lot of visits lately to power companies seeking protection against the risk of cyberattack. Their takeaway: Security at about half the companies they visit is too weak for Lloyds to offer a policy.

"When Lloyds won't insure you, you know you've got a problem," said Patrick Miller, founder of the Energy Sector Security Consortium, a Washington-based nonprofit that advocates tougher cybersecurity measures for the electricity industry.