According to the European Union Agency for Cybersecurity (ENISA), Ransomware was named as the prime threat for 2020-2021. Pushed further by the increased frequency at which cyber-attacks are being reported, cyber now tops the Boardroom agenda. So where does the London market currently stand on cyber-risks?

Exacerbated by the pandemic, the increased frequency and severity of ransomware attacks, as well as the possibility of aggregated or systemic losses, has resulted in underwriters now requiring businesses to demonstrate higher levels of cyber security measures to be in place before ‘qualifying’ for cyber insurance. A stark change from 12-18 months ago. Capacity remains readily available for clients who are playing their part in risk mitigation efforts, however insurers are limiting cover for those who are doing the bare minimum. More restrictive terms, sub-limits, higher deductibles and exclusions are now being seen.

Cyber is also experiencing significant rate increases with underwriters correcting former pre-loss pricing and taking more factors into consideration when reviewing risks. Proactive and robust cyber security practices are now crucial for both existing and first-time buyers to get the best terms and most effective responses from underwriters.

We work in close partnership with regional brokers that wish to deliver the best for their customers. This can be by identifying simple ways to make an insured’s cyber-risk profile more attractive to underwriters or highlighting what they need to do themselves to raise their cyber hygiene levels. We also have access to a network of locally based security experts who can work with insureds to improve their internal controls. We then take all this and present the insured in the best possible light to underwriters who have appetite for risks of its type.