Cyber and Financial Lines Claims Podcast: Exploring the Intersection of Cyber and D&O

I don't have the stats on D&O.

To answer your question, though, are there any mandatory obligations to purchase these types of insurance? The short answer is no, there are no legal obligations.

It's not like employer's liability, where it would be compulsory for certain businesses.

But what we often see is mandatory requirements set at a investment level.

So we see private equity companies insisting that their portfolio companies have a certain level of cyber insurance and certainly a certain level of D&O insurance as well.

And similarly, we see in commercial contracts an obligation on a counterparty to hold a certain level of cyber insurance that would benefit perhaps the commercial counterparty that might suffer a loss as a result of that business having a cyber attack.

So we see it through the back door, if you like, but no, no compulsory obligation, at least not at this stage.

We will come on, I think, to talk about a little bit of the regulatory climate, though, which is pointing towards the direction of personal responsibility for directors.

And I think the increased level of cyber attacks in the UK last year, some incredibly high-profile attacks, which we're all aware of.

I think that mood music, and I read yesterday that the government is going to be issuing a warning later this year to warn us about the risk of Russian cybercrime actually affecting the food supply.

So I do wonder whether things like that will actually drive the uptake of cyber insurance, even if I can't promise that at the moment, Carolyn, I don't think cyber insurance covers you for new food, as far as I'm, I'm aware.

Anyway, but yeah.

So I think it is not compulsory at this stage, but I do think the direction of travel is only trending in one direction, which is more insurance being purchased.