Lloyd’s Chief Cites Cyber Risk as Biggest Business Threat
Lloyd’s of London, founded in 1688 and one of the world’s largest insurance markets, reports that it has experienced rapid growth in the demand for insurance against cyberattacks.
“Cyber risk poses the most serious threat to businesses and national economies, and it’s an issue that’s not going to go away,” said Lloyd’s chief executive (CEO), Inga Beale. “The London market has a long, proud history of finding innovative solutions to insuring large, complex risks that are challenging to underwrite locally.”
Geoff White, underwriting manager for cyber, technology and media at Lloyd’s syndicate Barbican, said that the market for cyber insurance experienced a 50% increase in insurance submissions during the first three months of 2015 over the same period last year.
“In general terms, we’re continuing to see new customers purchasing cyber insurance and existing customers purchasing higher limits following recent high profile attacks,” said White.
“In terms of our customers, approximately 70% are first time purchasers. We’re also seeing customers in those sectors which were affected last year – and in particular in the retail sector – looking to buy higher limits.”