Cyber Resilience – New Trend of Cyber Insurers Restricting Payouts Has Consequences

DarkReading has written an article discussing the consequences for companies and cyber insurers in the wake of Lloyd’s of London’s decision to require member insurers to exclude state-backed cyberattacks from customers’ cyber insurance policies. The experts consulted unanimously agreed that this action damages trust in cyber insurance, increasing the uncertainty around whether an organization will be reimbursed after an attack. The main criticism is that the term “state-backed cyberattack” is extremely broad and can be abused by the insurance industry to limit payouts. In the short and medium term, it is expected companies will have to renew focus and investment in cyber defense assets, as cyber insurance becomes an inferior method to manage risk. Read more at DarkReading.