Given concerns in the cyber insurance market regarding the applicability of war exclusions in the wake of Russia’s invasion of Ukraine, there appears to be a consensus that insurers need to employ clearer language. In an interview with Carrier Management, Partner Peter Halprin addressed this issue as well as related concerns about a “pandemic-like” event involving cyber claims.
“When something catastrophic is happening, that’s when you’re supposed to be covered by your insurance, and then [the insurers] come out and say, ‘Oh, well, we can’t pay for all this. It’s too expensive,’” Halprin said.
When asked if the insurance industry learned from the pandemic in time to apply these lessons to recent concerns about cyber war, Halprin commented: “I think that insurers have a difficult task ahead of them because if they want to take a hard line on cybercrime and cyber incidents where things are murky, I think they risk shooting themselves in the foot on growing this market.”
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