The sustainability of the cyber insurance industry, and particularly concerns over cyber risk accumulation and systemic risks, will continue to be front of mind for the cyber insurance industry for the foreseeable future.
Within this, we have identified the following themes to look out for in the cyber insurance industry in 2024 and beyond.
1. Cyber war exclusions – time to be tested?
Many of the war exclusions we are familiar with, particularly in the property insurance context, date back to conflicts occurring in the 1930s, including the second Italo-Abyssinian War and the Spanish Civil War.1 An agreement was entered into between the Lloyd’s Underwriters Association (LUA) and the Association of British Insurers (ABI) to exclude war and civil war on all policies issued by Lloyd’s and London Companies subscribing to the agreement. This led to the introduction of the War and Civil War Exclusion clause NMA 464 1/1/38.
With cyber warfare becoming a common aspect of conflict in recent years, concerns over cyber insurance’s exposure to correlated widespread aggregation, as well as uncertainties in the construction of traditional war exclusions as applied to…
