HSF assists Airmic to prepare guide to cyber insurance

Herbert Smith Freehills has assisted Airmic (the UK association for those with a responsibility for risk management and insurance) along with others including Lloyd’s of London, to prepare a guide on cyber risk for policyholders. Cyber risk is a key issue currently facing corporate insureds and the guide aims to help risk managers lead the cyber risk conversation in their organisations. The guide provides a framework for corporates to assess their cyber risks and looks at the insurance solutions available in the market to mitigate those risks. It also considers how bespoke-cyber products compare with more traditional policies that corporates are likely to be familiar with.

HSF Partner, Greig Anderson, comments in the guide:

“Given the relative infancy of the UK cyber insurance market and the limited number of paid claims to date, insureds are often dubious that cyber insurance policies will pay against the losses they eventually suffer. It is vital that insurance and risk managers take the time to map the digital assets of their business against the threats they face and the scope of cyber insurance cover within their existing policy suite. Only then will they be able to clearly articulate the cover they require to insurers and increase the contract, coverage and claims certainty.”

At the time of the launch, the CEO of Lloyd’s of London, Inga Beale, predicted that the size of the cyber insurance market could double in the next three years. “This threat is really alive for businesses,” she said.

To access the guide on ‘Cyber risk: understanding your risk and purchasing insurance’ please click here.