Don't panic about cyber insurers pulling up the drawbridge, says Lloyd's

Infosec industry panic about new cyber insurance model clauses excluding cover for state-back intrusions is wide of the mark, the Lloyd's Market Association has told The Register. The LMA, a trade body for Lloyd's-affiliated insurance syndicates, published a series of model clauses last week that caused some disquiet among …

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Legal malware profits

Insurance companies have the burden of making a profit from malware attacks, they have to work out what their payments will be and ensure that their client insurance payments are high enough that they can make a profit. Our insurance companies make more money than the hackers.

[Zippy´s Sausage Factory]

How do you define war?

That's the tricky part to me. If your insurer can unilaterally decide that any specific cyber attack is state-sponsored and therefore an act of war, that's troubling, as it's basically a "get out of jail free" card they can play every time they like.

I can understand that if they insure against war, then the whole system goes down if there is one. The tricky bit is finding a definition of what a "cyber war" actually is, without invoking SkyNet and Terminators...

[Anonymous Coward]

Re: How do you define war?

Insurance companies always have a get out of jail free card, its an industry of greasy weasels in teflon coated suits.

But of course Lloyds are going to say don't worry we'll insure you they want your money.

[naive]

Re: How do you define war?

That makes them perfect company for market leaders in the IT industry, where MS for decades in a row gets away with neglecting security issues in its products without ever being taken to task for it.

But at least it is nice MS fanbois now can insure their IT rust buckets for the case an axle get ripped off by a few enthusiastic Russian teenagers due to the large security holes provided for free by the friendly smiling people from Redmond.

[Throatwarbler Mangrove]

Re: How do you define war?

"an industry of greasy weasels in teflon coated suits."

Yoink.

[Doctor Syntax]

"So the LMA said, anyway."

Why does the name "Rice-Davies" suddenly occur to me?

[vtcodger]

Less Than Reassuring

"[They] didn't have the insurance-specific knowledge to fully understand it."

I read this as "Insurance companies speak in tongues, but don't worry your pretty little head about it. Just send in your money and you'll be fine"

Somehow I find this less than reassuring.

[TaabuTheCat]

"I read this as "Insurance companies speak in tongues, but don't worry your pretty little head about it. Just send in your money and you'll be fine""

Yeah, pretty much always been this way. You have a policy but do you have coverage? The only way to know for sure is to file a claim. And then the fun begins on the carrier side looking for any reason possible not to pay. Obscure language to the rescue. "You thought it said this was covered? So sorry, but you misunderstood and your policy doesn't cover that type of damage. Oh, and here's your premium renewal invoice."

[Bitsminer]

"War is what I say it is"

After 9/11, we got stuck in Europe trying to get home. Had to buy new air tickets.

The "travel insurance" declined to pay on account of "it was an act of war". Said nobody except GWB some months later.

The insurance industry tout says things like "Insurance companies have the burden of proving an exclusion clause applies".

Only if you drag them, kicking and screaming, into court. And fight them, for several years. At your own expense. Over the meaning of "reasonable".

Luck to you!

[Anonymous Coward]

"You don't understand how insurance works. We pick and choose from several template paragraphs to build a custom solution contract that is guaranteed to never pay out..."