Cyber Reinsurance Underwriting Group Formed for London Market

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The International Underwriting Association of London (IUA), representing carriers operating in or through London, has formed a group on cyber underwriting specifically for reinsurers.

The organization said the move follows a growing interest amongst reinsurance practitioners in the activities of the association’s existing Cyber Underwriting Group, which is run for underwriters offering standalone cyber policies and is made up largely of carriers providing direct cover.

The organization said its new group, the IUA Cyber Reinsurance Committee, will serve its reinsurer members that have a slightly different focus and interest with regard to cyber coverage than the existing cyber group. Already 14 member companies are represented on the new committee.

“The rapid growth and fast-changing nature of cyber threats have created many challenges for reinsurers,” Chris Jones, IUA director of legal and market services, said. “Companies are keen to support the development of dedicated cyber products in the London Market and our new reinsurance groups aims to encourage this through discussion of both underwriting and claims issues. It will also be looking to represent members’ interests on any regulatory developments relevant to the sector and may consider new market policy wordings.”

The group is planning future discussions on topics including the impact of cyber war and terrorism risks; accumulation and aggregation of risk; the provision of cyber cover within traditional classes of business; natural perils as potential triggers for cyber events; and areas of potential overlap or gaps between product liability and errors and omissions policies.

The IUA Cyber Reinsurance Committee, which held its first meeting on May 22, is due to convene every second month with its next meeting scheduled for the end of July.

In January this year the IUA’s existing Cyber Underwriting Group published a report calling for a registry system that collects and shares statistical information on the cost and frequency of cyber losses and claims across Europe.