The cyber terrorism conundrum of which policy is best positioned to respond is beginning to be positively addressed by select London terrorism underwriters.
The standalone terrorism market was not providing the cover, mainly due to restrictions on their own treaty reinsurances and concerns about aggregation.
Over the past few years, power and utility companies in particular have therefore left the standalone terrorism market, and have instead been relying on their all-risks policies to cover themselves against cyber terrorism exposures.
This was leaving clients exposed as the terrorism element of the all-risks policy was not as broad and specialist as the standalone market offering.
Miller's Terrorism & political violence expertise
More recently, certain London terrorism underwriters have changed their stance and are now providing Cyber terrorism exclusion buyback coverage for property damage. This development does not yet include business interruption. The change in approach has been well received by the power and utility sector and a number of accounts are switching back to the standalone terrorism market to benefit from specialist coverage from specialist underwriters.