A recent report from the International Underwriting Association (IUA) underscores the need for cyber business interruption (BI) risks to receive the same level of attention as information technology security controls and ransomware threats.
The report, produced in collaboration with professional services firm Baker Tilly, examines claims trends from recent years.
It notes that while understanding of cyber business interruption has progressed, further improvements are needed to enhance the claims process for both insurers and policyholders.
Helen Dalziel (pictured above), director of public policy at the IUA, said that the cyber insurance market has seen a notable increase in business interruption claims in terms of both frequency and financial impact.
She referenced high-profile incidents in 2024, including those involving Change Healthcare, CDK and CrowdStrike, as examples of the risks businesses face.
Last year, several leading insurers notably made a push to reverse London International Exhibition Centre Plc’s BI coverage win, a year after the decision was handed down by the Commercial Court in London.
In June 2023, it was ruled that the Supreme Court’s 2021 judgment on radius disease concurrent causation is also applicable to ‘at the premises’ (ATP) disease clauses, granting the owner of exhibition space ExCel London a legal victory.
Ben Hobby, principal at Baker Tilly, commented on the importance of business interruption cover as a key component of cyber insurance policies and its role in claim settlements.
Hobby said sharing insights gained from handling cyber claims is crucial to improving understanding of financial exposures related to cyber business interruption.
Outside of businesses, it was also revealed that British government departments have operated hundreds of outdated computer systems and failed to meet their own cybersecurity targets, increasing the risk of a disruptive hack.
A report from the National Audit Office, an independent parliamentary body, flagged the concerns in after reviewing cybersecurity practices across the UK’s central government.
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