More than 40 people participated in the first meeting of a new cyber risk group run by the International Underwriting Association for the London company market.
A strong interest in the subject across several different traditional classes of business prompted the association to launch the new group. It will act as a debating forum for underwriters who have developed an interest in cyber liabilities from a background in other areas of insurance.
The group will also seek to raise awareness of the potential aggregate exposures arising from cyber risks. At the first meeting IUA members discussed how clients and brokers are increasingly seeking cover for new cyber risks via modifications to standard general liability or professional lines policies. There is concern that risks, more suitable to a dedicated cyber policy are being unwittingly accepted without proper analysis.
Chris Jones, the IUA’s Director of Market Services, said: “There has been widespread debate about the growth of cyber risks in many of the IUA’s existing underwriting committees. We were, however, still surprised at the level of interest expressed in the operation of a new IUA group.
“In fact, the response was so great that we were unable to accommodate the first meeting in the IUA’s own meeting rooms and were grateful to be loaned a larger facility by DAC Beachcroft.”
The IUA already operates a Cyber Underwriting Group for practitioners offering stand-alone cyber policies. Such is the ubiquity of technology, however, knowledge of risks in this area will be necessary for many different underwriters across the London company market.
Future activity for the IUA’s new Cyber Interest Group may include an examination of loss scenarios and drafting of model market wordings. It will meet on a quarterly basis and liaise closely with the stand-alone cyber practitioners committee.
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.