Dan Trueman

Cyber liability claims severity rose in the first half of this year, with business email compromises the leading source of loss in the first half of 2024, according to a report by cyber insurer Coalition. Overall claims severity increased by 14% compared with the same period last year, to an average loss of $122,000, primarily driven by a spike in ransomware severity as hackers and criminals targeted larger businesses. More... https://ow.ly/bpFR50TJPxU #cybernews #cyber #cyberclaims Coalition, Inc. #RansomwareClaims

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In recent years, the corporate world has witnessed a significant rise in the frequency of directors and officers (D&O) claims following major cyber incidents. This phenomenon underscores the intricate link between cyber risks and D&O liabilities, highlighting the need for a cohesive approach to managing these intertwined risks. Delighted to share our case for a unified risk management strategy, co-authored by Dr. Claudia Piccirilli and me. https://lnkd.in/eamjxusx

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Cyber insurance buyers should review their policies, particularly wordings related to business interruption exposures, to ensure they are adequately covered for events like the recent CrowdStrike outage, experts say. While cyber liability insurance losses are often associated with hacks and ransomware attacks, the systems failure caused by a faulty update from cybersecurity software provider CrowdStrike last month demonstrated the potential for losses from nonmalicious acts. More here... https://ow.ly/sH9Z50ST4gX #CrowdStrike #CyberInsurance #CyberLiability

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Insurance groups urge state support for ‘uninsurable’ cyber risks https://lnkd.in/edg98X58 Cyber attacks pose a risk as big as terrorism and flooding, according to two of the world’s biggest insurance groups that are calling for state support to help the industry to absorb losses.  

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Cyber Insurance Alert: Key Insights from Miller on CrowdStrike Outage Premium Hike Expected: The recent CrowdStrike outage is likely to drive up cyber insurance premiums. Stricter Terms: Insurers may introduce more stringent terms and conditions due to heightened risk perception. Market Reversal: The softening trend in the cyber market might temporarily reverse, with increased premiums and tighter wordings. #CyberInsurance #CrowdStrike #InsurancePremiums #PolicyTerms #CyberRisk #Reinsurance #SystemicRisk #BusinessInterruption #ThirdPartyLiability

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Leveraging claims preparation coverage within cyber policies can lead to quicker resolutions for cyber business interruption claims. On 15 October, the LMA invites you to explore the question: Is There a Better Way to Handle Cyber BI Claims? Full members can register here: https://lnkd.in/emQrkDk4

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Lloyd's is upping the bar in its oversight of cyber re/insurance exposures and exclusions on state-backed events, adding phase out dates for non-compliant covers and target dates for proper cover of policies affirming war-related coverage. Read the full update here: https://ow.ly/Zq4s50RGR1g

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There will be significantly more of these systemic cyber attacks and concomitant losses in the weeks, months, and years ahead. Cyber risks are nothing like any other risks the insurance industry has seen and profitably underwritten through the many hundreds of years of the industry’s existence. Nothing, Nada, Zip, Zilch. These systemic cyber attacks should be ‘underwritten’ only by the US Federal Government. #cyber #cyberattacks #systemiccyberattacks #federalgovernmentbackstop

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How confident are you in articulating the financial implications of your cyber risks? WTWs Cyber Quantified solution gives you concise, useful and visually compelling data about your cyber risks https://ow.ly/iVaA30sCtG5 #CyberRisk #RiskManagemen#ASmarterWayToRisk #RiskAnalytics #WTWPerspective #riskmanagement

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Great insight below for those asking questions about the Microsoft outage and their cyber coverage.

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Cyber Insurance – Metrics to evaluate adequacy of cover Maturity Gap: Cyber insurance is still relatively immature compared to traditional insurance lines, leading to inconsistencies in coverage and pricing. Complexity and Nuance: The technical complexity of cyber risks and the evolving threat landscape make it difficult for both insurers and insureds to assess and price risks accurately. #cybersecurity #cyberinsurance #cyberrisk #datasecurity #databreach #cyberattack #informationsecurity #ITsecurity #riskmanagement #businesscontinuity #cyberthreat #ransomware #phishing #hacking

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I just read a Lloyd's futureset report from 2022 titled 'Shifting powers: physical cyber risk in a changing geopolitical landscape' https://lnkd.in/eTu-2nQ6 One page (31) caught my eye; Axio now provides the technical risk assessment and suitable exposure estimation making it easier for insurers to step up and close the protection gap for investors in 2025; new solutions, new market premium..... 'Insurers could look to create new affirmative physical asset damage cover, scalable to the size and value of each policyholder and adapted to their operational infrastructure. This kind of cover can sit alongside the provision of expert IT guidance, whilst evidence of consistent cyber security risk management practices could also be used to discount policy premiums.    This type of cover is already offered to a limited market, but could be expanded and advertised further. When assessing the feasibility of underwriting cyber physical risk in a new sector, insurers will need to consult with industrial engineers and security experts to create a technical risk assessment and suitable exposure estimate. This is necessary in order to reveal all the ways in which a particular type of system may be abused to cause damage, and also protects insurers from claim mismanagement. The exposure estimate should ultimately take into account both the vulnerability and the attractiveness of the industry or network as a target and use this to determine appropriate policy wordings and limits for new cyber policies or add-ons. www.axio.com #cyber #cyberphysicaldamage #insurance

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Lloyd’s recent report, "Components of a Major Cyber Event," provides a robust framework for analyzing the factors that define and shape major cyber incidents. Interesting read.

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