Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 261

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 261
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, and networks
may become the target of cyberattacks or information security breaches that could result in the unauthorized release, gathering, monitoring,
misuse, loss or destruction of our or our insureds’ confidential, proprietary and other information, or otherwise disrupt our or
our insureds’ or other third-parties’ business operations, which in turn may result in legal claims, regulatory scrutiny and
liability, reputational damage, the incurrence of costs to eliminate or mitigate further exposure, and the loss of customers. Although
to date we are not aware of any information security breaches or losses relating to cyberattacks, there can be no assurance that we will
not suffer such losses in the future. Our risk and exposure to these matters remains heightened because of, among other things, the evolving
nature and increasing frequency and sophistication of these threats and the outsourcing of some of our business operations. As a result,
cybersecurity and the continued development and enhancement of our controls, processes, and practices designed to protect our systems,
computers, software, data, and networks from attack, damage, or unauthorized access remain a priority. As cyber threats continue to evolve,
we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate
and remediate any information security vulnerabilities.

The compromise of personal, confidential, or proprietary
information could also subject us to legal liability or regulatory action, including fines, penalties, or intervention, under evolving
cybersecurity, data protection, and privacy laws and regulations enacted by the U.S. federal and state governments. Such laws and regulations
have become increasingly widespread and demanding in recent 

19 

years and may result in increased compliance costs and risk of regulatory
actions or penalties. If incurred, such regulatory actions or penalties could harm our reputation. Any such events could have an adverse
impact on our business, financial condition or results of operations.

Regulatory Risks

A portion of our written premiums and net
profits are generated from multi-peril crop insurance business, and the loss of such business as a result of a termination of or substantial
changes to the federal crop insurance program could have an adverse effect on our revenues and net income.

In 2024, 2023, and 2022, our direct premiums written
generated from the multi-peril crop insurance line of business were 9.8%, 10.2%, and 12.8%, respectively, of total written premiums. Through
the FCIC, the U.S. government