Lloyd’s Cyber Insurance Tweaks Stir Coverage Restriction Concern

Lloyd’s of London’s recent mandate that companies in its vast market stop selling insurance for state-backed cyber attacks will drive some global insurers to restrict coverage in a fast-growing business.

Lloyd’s, the world’s largest insurance marketplace, earlier this month asked all cyber insurers selling through its platform to rewrite their policies, starting March 2023, to indicate that they will stop selling coverage for cyber-attacks that are sponsored by government entities.

The announcement will force Lloyd’s insurers to balance making their products competitive with narrowing cyberattacks coverage. It could also encourage carriers not on Lloyd’s market to exclude coverage for catastrophic ...