Call us now:
A sign of the times, as more organizations seem to be challenging the decisions of insurance firms in court. The Mactavish report is worth downloading when you put your cyber insurance hat on. With the report concluding that there is a rise in disputed claims and litigation, with more claims being contested or delayed by insurers. While the sample size is not big, the direction of travel and rate of increase in cases where the insurer is the defendant in court is difficult to ignore.
‘Corporations are now more than three times as likely to have to sue their insurers.’
With a cyber insurance lens, we have seen some notable cases with Merck and the Mondelez grabbing attention; there are exclusion clauses working their way through the insurance market, and with cyber attacks on the increase governments are adopting a regulatory response. A regulatory response that will in ones opinion ‘harden the market’ quickly as cyber becomes a regulatory ‘left of bang’ problem for companies. As cyber risk is transferred from cyber insurance by regulatory compliance, to financial statements. Regulatory compliance that may effect D&O more than cyber insurance, and effect boards reliance on insurance as a risk transfer tool.
It is unlikely that an insurance product will simply payout in the event of a regulatory breach. One wonders therefore the effect on corporations as they have to comply with both cyber regulation on one hand, and address the certainty of insurance on the other?
Thoughts?
Ted Dziekanowski Rachel V. Rose, JD, MBA Stephen Pitt-Walker, JD, FGIA George Doughty TD BA MAE Celso De Azevedo FCIArb
#cyberinsurance #cyberriskmanagement #insurancelitigation #directorsandofficers
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7069395196567810049