The mud gets a little clearer for War related cyber exclusions with Lloyds of London, or maybe not.

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The mud gets a little clearer for War related cyber exclusions with Lloyds of London, or maybe not. Exclusions require a suitable clause excluding liability for losses arising from any state backed cyber-attack”.

The problem for the insured today, as in 2022, is how do you define a state backed cyber-attack. One only has to look at some of the more recent significant cyber attacks and ask of those attacks how many weren’t from threat actors linked to nation states? Or ask about the continued growth in the cyber coverage gap, to see how difficult cyber risk management through insurance is becoming. ‘Right of Bang’ does not manage cyber risk.

As cyber risk becomes harder to manage one has to ask for how long will cyber insurers be able to provide appropriate products and services, without the insured undertaking and demonstrating cybersecurity risk management? Exclusions clauses and policy wordings make it nigh on impossible for the insured to know what they are getting from a policy, when an unknown threat actors knocks on the door.

Cyber regulation provides the only certainty for covered companies, that may in turn be the best alternative for cyber insurer to support their clients go ‘Left of bang’.

It’s why our cyber programs work on the ‘Left of Bang’, not Right. Something cyber insurers will one day grasp.

@Thaddeus Dziekanowski Brian D. McCarthy

Veritas GRC

#cybersecurity #cyberriskmanagement #cyberinsurance

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