Posted on: 16 March 2020
A new London Market committee, established to address non-affirmative cyber insurance coverage, has met for the first time. The group has been set up by the International Underwriting Association in response to a growing regulatory scrutiny of insurance policies that do not explicitly include or exclude cyber risks. It is made up of senior underwriting practitioners from across more than 20 of the association’s member companies.
The management of cyber risks is a leading priority for the London company market and is being addressed by a number of existing IUA underwriting committees for more traditional lines of business. A number of model clauses have been published to support firms’ in their preparation of policies that are explicit in the scope of insurance coverage provided.
Now, the IUA’s dedicated Non-Affirmative Cyber Risk Committee will be seeking to develop a more detailed understanding of the challenge, supporting the work of other underwriting groups. It plans to collate and share publicly available information, consider the impact of model clauses when applied to different lines of business and analyse interactions between standalone cyber and other insurance policies.
Tom Hughes, market services executive at the IUA, is secretary to the new committee. “A major cyber event could have widespread impact on a number of different classes of business,” he said.
“Companies have been working hard to assess and control their exposures to non-affirmative cyber risks and these efforts are very much ongoing. Market conditions, changing client expectations and lack of historical data are all issues that must be prudently managed.
“The IUA’s new Non-Affirmative Cyber Risk Committee will assist members by identifying areas of complexity and promoting best practice across the London company market.”
Membership of the Non-Affirmative Cyber Risk Committee is open to underwriters from all IUA member companies. To nominate a representative please contact Tom Hughes on 020 7617 5449, email firstname.lastname@example.org.