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April 11, 2022

Munich Re considers updating cyber policy wordings to exclude war

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

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What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
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Munich Re is working to strengthen its cyber insurance policies as fears of cyber-attacks mount after the Russian invasion of Ukraine.

Speaking to Reuters, Munich Re chief underwriter Juergen Reinhart said that the reinsurer is looking to update its cyber policies by adding clearer war exclusion clauses.

Most cyber insurance policies offered to firms cover the losses incurred due to business interruption and repair hacked systems after a cyber-attack, but these policies do not include war.

These grey areas created due to policy wordings leave insurers exposed to claims for cyber war.

Reinhart noted that the Russia-Ukraine conflict is not a “classic cyber war”, but it was best to be prepared.

The firm is planning to add new clauses to its direct cyber insurance offerings, Reinhart said, adding that the reinsurer has also asked its cyber insurance clients to do the same.

Last month, the German reinsurer joined peers in halting new business in Russia and Belarus and pausing the renewal of existing ones.

In the case of the Covid-19 pandemic, unclear wordings in the business interruption policies triggered several legal battles across the world over whether the pandemic was covered by insurance or not.

Reinhart said: “We have learnt this lesson as an industry in respect of the pandemic – how painful it is if you have unclear wordings. Our intention is to have very, very clear wordings…and avoid surprises.”

UK insurance buyers’ association Airmic chief executive Julia Graham said: “There has been a lot of uncertainty among Airmic members around war exclusions, especially for their cyber policies. The lack of standardised policy wordings on cyber in the market has certainly not helped things.”

Free Report
img

What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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