Lloyd’s of London has revealed updated arrangements for the phased implementation of classes of business that require underwriters to ensure that all policies either affirm or exclude cyber cover.
The Lloyd’s insurance and reinsurance marketplace announced last year that is to mandate that all policies clearly state whether they will provide affirmative coverage for cyber risks.
Phase 1 of the initiative, effective January 1st, 2020, required underwriters in the marketplace to clarify whether first-party property damage policies affirm or exclude cyber cover.
Lloyd’s states that after additional consultation with market representatives, it is now confirming the phasing for the remaining classes business, with this now being achieved over a further three phases rather than in two stages.
The Phase 2 classes of business include: Accident & Health (Direct); Contingency; Space; Political Risks, Credit and Financial Guarantee; BBB/Crime; Property Cat XL; Property Pro Rata; Property Risks XS; Agriculture & Hail; and Livestock Excess of Loss.
For this Phase of business classes, underwriters are to ensure that all policies incepted on or after July 1st, 2020 either affirm or exclude cyber cover.
“For proportional treaty risks where there is no separate risk code and therefore the placement is recorded within the corresponding direct insurance risk code, managing agents should implement the new requirements from six months after the phase implementation date of the relevant direct insurance class,” explains Lloyd’s.
For the Phase 3 classes of business, underwriters are to ensure that all policies incepted on or after January 1st, 2021 either affirm or exclude cyber cover, while for the Phase 4 classes the date is July 1st, 2021.
