“Misreporting about the LMA (Lloyd’s Market Association) exclusions – specifically that Lloyd’s war exclusions do not cover state-sponsored cyber attacks – has been “deeply unhelpful,” said Andrew Hill, global head of Cyber Coverage & Innovation at WTW, who moderated a panel on the LMA cyber war exclusions at the Zywave Cyber Risk Insights London Conference 2023.
While one of the exclusions does exclude all state-sponsored attacks – that’s LMA5564 and its iterations – Hill said that exclusion is not being used anyway. The most commonly used exclusion is LMA5567, which does not blanket exclude nation-state attacks. ‘In fact, on the contrary, it covers nation-state cyber attacks unless certain thresholds have been met,’ he added.”
OTOH, Lloyd’s most common cyber war exclusion applies when insured assets are in country that’s suffered a “major detrimental impact,” which nobody seems able to define clearly.
The rollout of the Lloyd’s Market Association’s (LMA) cyber war exclusions has received considerable criticism for the chaos and confusion caused in the
Source: Lloyd’s Cyber War Exclusions: Confusing, Disruptive, but Necessary?