Lloyd's of London insurers form cyber coverage consortium
Beazley P.L.C., Aspen Insurance Holdings Ltd., and Brit Global Specialty have launched a consortium to underwrite cyber data breach coverage at Lloyd's of London for businesses domiciled outside of the United States, Beazley announced Monday.
The consortium, to be known as the International Cyber Consortium, will offer data breach coverage to companies from all industry types with revenues of more than $5 billion, Beazley said in a statement.
Beazley will manage the consortium and lead on claims handling, the statement said, but the shares of individual risks allocated to the members of the consortium will vary in line with underwriting appetite.
The consortium will underwrite business on both a primary and an excess basis, and policy forms will be available in multiple languages.
The consortium will bring an extra $60 million of capacity to the cyber insurance market, the statement said.
“Businesses outside the United States are rapidly discovering what U.S. businesses and their customers have known for some years: that a data breach is not a matter of if, but when,” said Paul Bantick, head of London and international business for Beazley's technology, media and business services group, in the statement.
“Businesses outside the United States hold just as much personal data in trust for their customers, and the reputational consequences of a data breach can be severe,” he added.
Beazley operates syndicates 623 and 2623 at Lloyd's; Aspen operates syndicate 4711 and Brit operates syndicate 2987.