The cyber market remains immature and many would say relatively untested at present. It is widely thought that cyber represents the hottest topic with the greatest potential for development in the insurance and reinsurance sector for 2019 and indeed, the years to come. Of course, with growth come challenges - the lack of experience in the area of cyber loss means the sector may find the development of a product to suit the needs of customers a testing task, especially given the embryonic nature of risks associated with cyber.

Failings associated with cyber policies were brought to the attention of the insurance sector earlier this year when Mactavish suggested that defects in the policies could be used to deny paying claims, such as limitations on system interruption, as well as exclusions for software in development. However, some regard this as scaremongering.

Consequently, it is very likely that a level of uncertainty about what is covered and the circumstances in which policies will respond will continue to surround cyber insurance products in the future. However, the London market could seek to seize an opportunity here with its ability to offer specialised and bespoke cover. Developing the right products to meet customers’ needs will be challenging, but likewise a clear understanding of the risks faced will be critical.