Cyber insurance consortium expands in the face of rising risks

Insurance group Brit has announced it is to renew and increase its long-running cyber insurance consortium in the face of rising threats for businesses in key sector of the economy.

The underwriter will extend the Brit Cyber Attack Plus (BCAP), a cyber product, which is designed to protect its clients from the impact of physical damage arising from cyber-attacks.

BCAP offers limits of up to $100 million and wrote in excess of $100 million in Gross Written Premium in 2022, making it one of the largest cyber consortiums in the market by both premium and capacity. Brit said the consortium is projected to grow premium by up to 50% in 2023.

Adam Taylor, Class Underwriter, Cyber, Privacy and Technology commented: “BCAP has always acted as a pioneer in the cyber market.

Although the growing frequency and severity of cyber-attacks is well documented, we are seeing that physical assets are becoming ever more vulnerable to threat actors, especially given the trend towards digitalisation and growth of IoT in manufacturing, industrial processes and physical infrastructure. We have continued to innovate BCAP to ensure it can both insure against these risks while also offering a full suite of traditional cyber coverage, making it the most comprehensive and flexible product in the market. The growing demand we are seeing has enabled us to renew and expand the consortium and we’re delighted to have the continued commitment of our capacity partners, enabling us to continue to solve a critical need through a unique product.”

Brit added: “As businesses in the energy, industrial, manufacturing and utility industries found their property assets increasingly dependent on technology, BCAP was launched in 2014 to address the coverage gap that had emerged in traditional lines of insurance, whereby physical damage and subsequent business interruption emanating from a malicious cyber-attack were being excluded.”

The insurer said 2022 saw a growing number of cyber incidents impacting physical assets, while the increasingly volatile economic and geopolitical landscape is driving increased demand for the protection of critical infrastructure as well as manufacturing and industrial operations.

“BCAP continues to offer a broad spectrum of cyber coverage including business interruption, data privacy, breach response, cyber extortion, reputational harm and cyber liability coverage,” Brit concluded.