Huff: Bermuda can be a leader in cyber
The emergence of cyber-risk is prompting insurance companies to move beyond pure indemnification of loss costs, the president of the Association of Bermuda Insurers and Reinsurers has said.
John Huff was speaking at Monte Carlo Reinsurance Rendez-Vous de Septembre, the annual conference of reinsurers.
“What cyber is highlighting, and Abir members have been very strong in delivering, is that cyber starts with policyholders asking the insurers and the reinsurers to tell them how to protect themselves, through the underwriting process,” he told Monte Carlo Today, a special edition published by Intelligent Insurer.
“Insurers are improving ‘cyberhygiene' by telling potential customers, who are merely applying for cyber coverage, that no, they're not interested in them because they don't have the software patches, or hardware enhancements, or a protocol, or a culture for cyber resilience.
“The industry is now going from silent cyber, that may or may not be in D&O and other policies, to a true standalone affirmative cyber product. Regulators are pushing for it and the industry is responding. It will be an exciting time.”
Mr Huff said Bermuda was at the forefront of the market and continues to provide the thought leadership and impetus to lead that shift to standalone products.
“I'm getting very energised about cyber,” he said. “Bermuda will take a leadership role in this area because cyber is going to evolve.
“No-one knows yet what the magic formula is for coverage and for cyber terms and conditions and what will be the exact value proposition for cyber coverage.
“One thing is certain: it will require flexibility and adaptation.”