Read the given passage and answer the questions that follow.

There is a market failure in cyber security. Solutions being suggested or tried include increasing transparency about data losses, helping consumers and firms to make more informed decisions about cyber security, shedding more light on how Internet Service Providers (ISPs) tackle malware infections they spot on customers' computers and using liability laws to force software companies to produce safer codes. On transparency, America has led the way. Almost all American States now have data-breach laws that require firms to reveal any loss of sensitive customer information. In Europe, telecom firms have been obliged to notify customers of breaches for some time now, and there are plans to extend reporting a wider range of industries.

Breach laws have encouraged insurance companies to offer coverage against potential losses. This is helpful because they are in a position to gather and share information about best practices across a wide range of companies. A cyber insurer advises companies on defensive tactics and also on how to minimise the damage if something goes wrong. The American government should create a Cyber Security Board equivalent of the National Transportation Safety Board, which investigates serious accidents and shares information about them.

Such a body could look into all breaches that cost over $50 m and make sure the lessons are shared widely. But insurers are likely to remain wary of taking on broader risks because the costs associated with a serious cyber accident could be astronomic. Insurers can deal with acts of God but not acts of anonymous hacking groups or acts of state-sponsored hacking. This explains why the overall cyber - insurance market is still small. Governments are weighing in, too, not least by supporting private-sector efforts to clean up botnets, or networks of compromised computers controlled by hackers. These networks, which are prevalent in countries such as America and China, can be used to launch attacks and spread malware.