| Link(s): | New report urges market protocol for cyber claims – IUA Cyber – IUA 055_Cyber-BITowers-2026.pdf |
Context
The IUA has published an article urging market protocols for cyber-related business interruption claims, stating that a new published report demonstrates that the market would benefit from clear protocols governing the review process.
Key points to note and next actions
- Such claims are often complex in situations where a tower structure has been established, with multiple insurers providing layers of coverage for large risks.
- An established framework, covering questions such as the appointment of experts, fee sharing, and information flows could bring greater consistency and efficiency to the process.
- The IUA’s new paper outlines how the layered structure of cyber towers currently poses a number of challenges for reviewing claims. So called ‘split market reviews’ can be fragmented with duplicated effort and other wasteful procedures.
- Compared to traditional insurance sectors, like property, the cyber insurance sector is still relatively young and established protocols are still emerging. Many claim handlers are building their business interruption experience as the market grows.
- To build on the findings of the new report, the IUA will, in the coming months, be convening market practitioners to consider potential solutions and practical next steps for the cyber insurance market.