Leading insurance market Lloyd's of London is to mandate that all policies clearly state whether they will provide affirmative coverage for cyber risks.
As of January 1, 2020, Lloyd’s underwriters will be required to clarify whether first-party property damage policies affirm or exclude cyber cover. For liability and treaty reinsurance, the requirements will come into effect in two phases during 2020 and 2021.
Lloyd’s will monitor compliance with this new requirement through its regular planned oversight activities, which it said will be set out in the market oversight plan for 2020.
High-profile attacks, such as the $69 million LockerGoga incident faced by Norsk Hydro this year, have helped to raise awareness of the need for more affirmative cyber coverage in the market.
[Source: Reinsurance News]