With British Airways facing a record £183m fine from the ICO after the theft of their customer data, many companies will be reviewing whether they have appropriate Cyber insurance in place. However, as the linked article suggests this may not be immediately apparent.
A company's non-cyber policies may have "Silent Cyber" or "non-affirmative" coverage which could be triggered by cyber perils. This is bad news for the customer as they lack clarity on what they are covered for but also for syndicates who may be unaware or unable to accurately quantify their exposure to potentially massive claims.
Thankfully following calls from the PRA for action on silent Cyber Lloyd’s is taking steps to rectify the situation. The new mandate will require clarity on first-party property damage policies followed by liability and treaty reinsurance.
Insurance and reinsurance marketplace Lloyd’s of London is to mandate that all policies clearly state whether they will provide affirmative coverage for cyber risks. From January 1, 2020, Lloyd’s underwriters will be required to clarify whether first-party property damage policies affirm or exclude cyber cover.