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Evaluating Cyber Insurance

Philippa Kelly takes a look at the risks and challenges associated with cyber insurance

Cyber protectionThe changing nature of business risks means insurers must be innovative in writing and pricing policies that help deliver business continuity in the modern world. Cyber attacks are a relatively new risk and how claims on property and explicit cyber policies will work is currently the subject of a legal dispute.

In 2018, following the NotPetya cyber-attack, snack maker Mondelez sued Zurich Insurance for $100m following Zurich’s “unprecedented” use of the exclusion clause in its insurance policy relating to “hostile or war-like action in time of peace or war”. The use of the exclusion clause was in part driven by UK, US, Canadian and Australian government announcements to publicly blame Russia for the attack, which in the eyes of Zurich meant it fell into the category of hostile or war-like action.