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Source: Getty

In The Media

Cyber Insurers Should ‘Abandon Traditional War and Terrorism Exclusions’

Cyber risk is greater than many had thought, with global aggregation potential—and insurance coverage remains limited and flecked with ambiguities.

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By Jon Bateman
Published on Oct 5, 2020
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Technology and International Affairs

The Technology and International Affairs Program develops insights to address the governance challenges and large-scale risks of new technologies. Our experts identify actionable best practices and incentives for industry and government leaders on artificial intelligence, cyber threats, cloud security, countering influence operations, reducing the risk of biotechnologies, and ensuring global digital inclusion.

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Source: Insurer

In 2017, Russia’s military shocked the world by launching the most damaging cyberattack in history, a $10 billion global incident called NotPetya. Insurers felt this shock sharply, and the tremors still reverberate today. NotPetya showed that cyber risk is greater than many had thought, with global aggregation potential—and that insurance coverage remains limited and flecked with ambiguities. Three years later, the industry has not yet overcome these challenges. One of the thorniest unresolved questions is how war exclusions apply to cyber incidents like NotPetya. 

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This article was originally published by the Insurer.

About the Author

Jon Bateman
Jon Bateman

Senior Fellow and Co-Director, Technology and International Affairs Program

Jon Bateman is a senior fellow and co-director of the Technology and International Affairs Program at the Carnegie Endowment for International Peace.

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Jon Bateman
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Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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