Munich Re’s syndicate at Lloyd’s of London has expanded its cyber solutions to include cyber exposure cover for the independent oil and gas sector, which goes beyond traditional data breaches to cover physical losses or expenses associated with cyber-attacks.
The operational and financial complexity of this particular sector presents growing threats to cyber risk, due to increased connectivity, sensitivity of data, unmanned operations and complex royalty payment structures for onshore operators.
The likely recurrence of cyber-attacks is expected to intensify as the link between technology and business continues to evolve, said Munich Re.
The reinsurer’s new cyber solution combines the firm’s expertise in cyber and energy underwriting skills to meet growing demand for cyber cover within the oil and gas sector.
Dominick Hoare, Chief Underwriting Officer of Munich Re Syndicate Limited in London, commented; “There is a heightened level of awareness around the risk of a cyber-attack on the oil and gas sector, particularly in the wake of recent events which have caused significant economic disruption.
“As automation and integration expose the oil and gas industry to new vulnerabilities, Munich Re is working to deliver a product that will compliment companies’ contingency measures to ensure that they are well prepared should a cyber incident occur.”
The foundation cover includes a full cyber attack buyback and a data breach cover and targets the upstream sector and automated aspects of firms’ operations.
It’s being launched to complement the existing Munich Re Cyber Solution “Vector” partnership with Beazley, which focuses on large corporate clients.