Marine Cyber Endorsement
Marine Cyber Endorsement
(For 2022, all reinsurance contracts will have to include an exclusion clause for cyber-risks’)
Dear Partners,
As you have no doubt experienced in your various policies, the past couple of years have seen many changes in the availability of reinsurance capacity and the current market environment indicates that the trend will continue in 2022.
The Sulphur2020 and Cyber2021 Regulations have come into force and with them a number of connected, and sizeable, casualties. The same goes for the Covid 19 outbreak, which led to the insertion of ad hoc exclusion clauses in all (re)insurance contracts.
Our reinsurers are onboard with our appreciation and evaluation of the risks,
but regulatory and compliance duties imposed onto them, also impose this on us.
The good news is, we are in the process of finalizing our reinsurance arrangements and we expect to be in a position to provide our clients the option to buy back the exclusion up to an individually agreed annual aggregate cyber-claims sub-limit. Understandably, the buyback option will entail inevitable administrative reporting and other procedures, which will generate additional admin work and costs.
“If you have any queries on this evolution, please contact your usual contact(s).”
At the time of issuing this notice the final details of our 2022 reinsurance programme have not yet been formally finalised.
Dan Lennhammer, Managing Director