Increase capital (option) or address state backed cyber was the choice for Lloyds, choosing the later to try and address the exposure that cyber…

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Increase capital (option) or address state backed cyber was the choice for Lloyds, choosing the later to try and address the exposure that cyber insurance brings to the Lloyds Market.

Very often in the past, these sort of corrections or evolutions to policy language happen post-event . . . after everything has gone wrong,” Patrick Tiernan, Lloyds chief of markets told the Financial Times. I think this is Lloyds being responsible to our customers and acting with the market.” The other option, he said, would be to drive up insurers capital requirements, which would add fuel to prices.

But Lloyds is between a rock and a hard place, as are most insurers and re-insures as are their clients. State Sponsored hacks are on the rise, supply chain security for most companies is an unknown quantity, most organisations don’t have cybersecurity as they cannot afford it (over 95% of companies are SMEs) and insurance premiums are increasing forcing SMEs to drop coverage.

The cyber insurance market is trying to find its feet at a time when geopolitical risks are at their highest for a very long time and cyber is considered a legitimate domain of operations (NATO 2016).

Is cyber a risk that can be realistically insured without a major structural change by the insurance market, one that the industry seems reluctant to make itself? But one which regulators seem to be addressing, as we discuss here – https://lnkd.in/dGFVVjCi

Ted Dziekanowski

#cyberinsurance #cyberriskmanagement #cybersecurity #theagugustagroup

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