August 21, 2017
Munich Re Syndicate at Lloyd’s has introduced an insurance solution to cover cyber exposure for the independent oil and gas sector.
This cover will encompass both traditional data breaches and any physical loss or expense associated with a potential cyber-attack.
The company said that the operational and financial complexity of this particular sector presents growing threats to cyber risk, due to increased connectivity, sensitivity of data, unmanned operations and complex royalty payment structures for onshore operators.
The likely recurrence of cyber-attacks is expected to intensify as the link between technology and business continues to evolve, it added.
The reinsurer’s new cyber solution combines the firm’s expertise in cyber and energy underwriting skills to meet growing demand for cyber cover within the oil and gas sector.
Munich Re Syndicate chief underwriting officer Dominick Hoare said: “There is a heightened level of awareness around the risk of a cyber-attack on the oil and gas sector, particularly in the wake of recent events which have caused significant economic disruption.
“As automation and integration expose the oil and gas industry to new vulnerabilities, Munich Re is working to deliver a product that will compliment companies’ contingency measures to ensure that they are well prepared should a cyber incident occur.”
The foundation cover includes provision for full cyber-attack buyback and a data breach cover. The product will be predominantly focused on the upstream sector, covering the automated aspect of a company’s operations.
This product will complement the existing Munich Re cyber solution “Vector” partnership with Beazley, which focuses on very large corporate clients.