The field of cyber insurance is enjoying accelerated growth and product development at the moment, and every day we are seeing the announcement of new initiatives from the London market. This fast and furious evolution makes for fascinating trend-watching for those of us working in this sector.
For example, one broker recently launched a gap insurance policy for the energy market designed specifically to cover risks arising from a cyber-attack that may be excluded by other cyber policies. Another carrier recently announced that it was expanding its cyber insurance offering beyond covering losses simply from data breaches arising from hacking, to include property damage, business interruption and bodily injury exposure arising from a hacking event. And this is exciting, because it demonstrates a growing recognition that cyber risk goes beyond data privacy concerns, and that the physical risk of a cyber attack affecting property and people is very real.
Justin Tivey, Senior Manager at Bond Dickinson LLP said " Cyber has often been seen as remote hackers pinching secrets but these products recognise the multi-dimensional nature of cyber threats and the consequences of them. Property damage and business interruption are the tangible problems that victims of cyber threats face and that we see clients facing. In this regard it is no longer sufficient just to consider cover for liability for lost data. But it does not stop here. These cyber products will continue to develop. They will become more focused and specialist, through change driven not just by market competition but by a greater understanding of the real rather than academic risks buyers face. And of course consumer demand. For those of us helping in some way to shape these products and supporting the stakeholders who design, sell and buy these products, it feels like we are small part of a large community of extraordinary innovators. And with one foot firmly in the future already, it truly is an exciting place to be."