Top cyber policies revealed – exclusive

CFC Underwriting has come out top as the insurer offering the most comprehensive cyber policies in the UK, according to an exclusive report compiled by Insurance Times.

Insurance Times researchers studied the wordings of cyber policies offered to businesses by 12 leading UK insurers to gauge which offered the widest scope of cover in their policies.

The insurers were awarded marks towards a total score reflecting how comprehensively their policies covered issues across 14 criteria from first party cover to cyber terrorism to viruses to destruction of tangible property.

The marks are not a reflection of the quality of cover nor levels of service.

CFC achieved a score of 90 out of 100, offering the most comprehensive coverage of all the policies assessed. Its policy insures against a wide range of risks from business interruption to reputational damage and, crucially, does not contain exclusions for cyber events arising from terrorism or socially-motivated hacking. Nor does it have an aggregate limit that would otherwise restrict cover in the event of multiple cyber breaches within a single policy period.

CFC was followed by a clutch of insurers scoring 85, including Ascent Underwriting, Aviva, Chubb, NIG, RSA and Travelers.

Cyber insurance is a growing market, but it is still young and developing. Policy wordings are constantly evolving, as evidenced by the changes to policies that have taken place since last year’s review, and the cover available to UK SMEs continues to grow.

This updated 2018 product review includes policies from four additional insurers: Chubb, Manchester Underwriting Management, QBE and Travelers, as well as updated policies from a number of other providers.

In addition to the changing nature of the policies available in the market, the cyber threats facing UK SMEs are also constantly changing as hackers continue to update their arsenals in order to maximise the damage they are able to inflict on businesses and individuals, meaning that it is more important than ever for brokers to stay up to date with the latest developments and advances.

The report groups policies into three different levels of cover:

Entry level cover – Cheaper policies suited to businesses that require a minimal level of protection from cyber risks;

Mid-level cover – An intermediate level of cover that provides protection against some more advanced cyber risks, but may still have certain policy exclusions and gaps in cover; and

Superior cover – Policies that provide the highest level of coverages available for the SME market.