Exclusions implemented by carriers in response to the SolarWinds hack may make insureds question their purchase of cyber cover, a senior cyber broker has said.
Speaking at a WSIA-hosted webinar on Friday, AmWins senior vice president David Lewison warned that the move by some carriers may run counter to the purpose of such cover, which is to provide indemnity for unknown risks.
“This always gets me a bit nervous as a broker, that when there’s a problem out there and the insurers say: actually, we don’t want to cover this.”
“Insureds say [in response]: the whole reason I’m buying this coverage is that unknown threats pop up. There has to be underwriting of the exposure,” he added.
Speaking alongside Lewison on the Webinar, Mickey Estey, a senior vice president at RT Specialty, added that SolarWinds exclusions had made it even more important for clients to give a notification of circumstance prior to their renewal date.
Last week in a note to clients, Willis Towers Watson warned that the attack is likely to have an “impactful” effect on the terms and availability of coverage for some institutions buying coverage.
Last week, Inside P&C revealed that markets including Chubb and Crum & Forster are requiring enhanced disclosure from clients in relation to the attack, and in some cases mandating new exclusions.
