The market confusion largely began when Lloyd’s of London asked carriers to exclude most state-backed cyber attacks.
“A policyholder can now face as many as five or six different kinds of war exclusions in a single standard policy, said Colin Daly, executive vice president of broker CAC Specialty.”
While this Bloomberg article reports some carriers are working on potential solutions for at least some state attacks, it’s clear there’s still no common solution or one on the immediate horizon.
“’At this point, nothing exists to the extent that satisfies customers, insurers, and brokers when dealing with systemic risk,’ said Greg Eskins, cyber product leader at Marsh & McLennan, referring to catastrophic cyber attacks.”
Adding to the confusion, carrier worries that if they cover both large technology end-users and their vendors, a large attack could swamp them.
Meantime, according to the article, some large companies are deciding to self-insure rather than invest in policies that may never cover them.
Global insurers are racing to figure out how to avoid covering government-sponsored cyberattacks and catastrophic hacks, as large damages and some notable companies’ retrenching spook the market.
Source: Cyber Insurance Market in Turmoil Over State-Backed Attacks