The International Underwriting Association (IUA) has announced the establishment of the IUA Cyber Reinsurance Committee, a new group focused on the concerns of reinsurers with regards to cyber risk.
Building on the activities of the IUA’s existing Cyber Underwriting Group, the new committee has been launched to consider the specific concerns of reinsurers, which, in some instances, have a different focus and interest when it comes to cyber cover.
IUA’s director of legal and market services, Chris Jones, said: “The rapid growth and fast-changing nature of cyber threats have created many challenges for reinsurers. 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 new committee already has 14 member companies, and held its first meeting on May 22nd, 2018.
The initial objective was to establish a framework for future dialogue, which is expected to cover issues such as the impact of cyber war and terrorism risks, cyber accumulation and the aggregation of risks, as well as the supply of cyber cover within traditional classes of business, and natural perils as possible triggers or cyber events, explained the IUA.
“The definition of cyber risks to be covered by the committee is quite broad and covers privacy and data protection, damage to intangible assets such as reputation and technology related errors and omissions. It also includes both physical damage arising from the misuse of information technology and non-physical damage arising, for example, from business interruption,” added Jones.
The IUA Cyber Reinsurance Committee is due to meet every second month, with the next meeting scheduled for the end of July, 2018.
