Bank of America at odds with Lloyd’s over state-backed cyberattack exemption
Bank of America has reportedly raised concerns with Lloyd’s of London about a move to exempt “state-backed” cyberattacks from standard insurance policies.
Bank of America highlighted its concerns with the policy in a series of meetings between Lloyd’s and its biggest clients, the Financial Times reported.
Marsh, the world’s biggest broker, is also understood to have arranged meetings with Lloyd’s for its clients over the exclusion, according to the report.
Last summer the centuries-old insurance marketplace said its insurers will be required to stop covering state-backed cyberattacks in standard cyber insurance policies. The policy came into force last month.
Lloyd’s argued such attacks could expose the market to unmanageable losses.
“If not managed properly [a state-backed cyberattack] has the potential to expose the market to systemic risks that syndicates could struggle to manage,” Lloyd’s said at the time.
Lloyd’s of London was contacted for comment on the report.
The policy change comes amid a surge in cyberattacks.
Cabinet office minister Oliver Dowden recently warned that “ideologically motivated” hackers linked to Russia could target crucial aspects of the UK’s infrastructure.
Cyber attacks are also a growing concern for the banking industry. In March, the Bank of England ordered banks to boost their defences against hackers following its first cyber stress tests on the sector.
In a letter to lenders the Bank said: “It is important that firms undertake appropriate planning, preparation, and testing to further strengthen individual firm capabilities and the underpinning assets, including technologies and processes which support the industry’s ability to respond and recover.”
In March, the European Central Bank also said it will ask major banks in Europe how they would “respond to, and recover from, a successful cyber attack.”