As Lloyds cyber exclusion clauses for ‘state backed cyber attacks’ come into effect one suspects that it is going to face challenges.

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As Lloyds cyber exclusion clauses for ‘state backed cyber attacks’ come into effect one suspects that it is going to face challenges. Firstly being able to attribute a hack to a named group, or individual with enough certainty to pass the ‘Clapham omnibus’ test. Secondly, how do you define a ‘state backed cyber attack’ I’m not convinced that many states will put their hands up and say ‘it was me’. Thirdly, how many attacks are state backed, assuming there is a very clear line between state, state backed and cyber criminal.

To Quote ‘€œIt€„¢s a public relations disaster for the industry,€ said Joshua Motta, chief executive at San Francisco-based Coalition, a major cyber insurer that sells some of its policies within Lloyd€„¢s.

We have a much better solution. Ted Dziekanowski and I wrote that cyber was a economically uninsurable risk in 2022. Is it now better for the insurance industry to work with the public and private sector, to come up with solutions that will enable their clients comply, given the tidal wave of cybersecurity risk management regulation, that is coming. Regulation that shifts cyber risk ‘left of bang’ back the financial statements of covered entities and away from cyber insurance?

We think it creates a win-win for everyone.

Ted Dziekanowski

#cyberinsurance #cyberriskmanagement #cyberregulation #cyberlaw

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