WTW clients around the world who have purchased excess layer cyber programs can now purchase CyXS, WTW’s latest excessive layer cyber facility as further protection against ransomware and other cyber risks.
The global broker’s latest cyber insurance offering is a completely different flexible product that allows access to up to 50 million (USD/GBP/EUR) of excess layer capacity to be deployed through Lloyd’s A-rated insurers anywhere in the program. Two lead insurers are enabled to deploy capacity on behalf of all the facility insurers, which provides that the underwriting process is streamlined.
CyXS also boasts coverage thickness. Its “follow form” coverage features customized WTW excess layer wording with proprietary excess attachment provisions, providing clients greater claims certainty and clarity where they encounter discrepancies in the terms and conditions within an insurance program.
A function called CyXS Restore also furnishes clients with the option to purchase a reinstatement of the limit for primary layer coverage at a pre-agreed additional premium percentage.
Global broker WTW’s head for GB Finex, cyber, and TMT, Glyn Thoms, said that the product had been inspired in part by WTW’s most current directors’ liability survey published in partnership with Clyde & Co.
“Our most recent directors liability survey … highlighted that cyber risks continue to be a top priority for organizations across the globe,” Thoms said. “For the last 12 to 18 months, the ransomware crisis has made obtaining cyber insurance capacity very difficult, yet the need from companies has continued to grow.”
The announcement follows closely on the heels of new data from blockchain forensics firm Chainalysis Inc, which found that ransom payments to cyber hackers – almost always paid in cryptocurrency – cost companies about US$456.8 million in 2022.
The study found that while the numbers represented a 40% year-on-year drop in ransom payments made, this was due to boosting legal risk rather than a decrease in cyber attacks, as the US government has recently turned aggressive in sanctioning cryptocurrency companies that facilitate illegal activity – including allegedly laundering ransomware payments.
“As we emerge into a more stable market, CyXS helps us continue to support our clients with efficiently accessing significant capacity and further adds to our broad suite of innovative cyber solutions,” Thoms said.