Molly McGinnis Stine

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Specialty insurer Beazley sponsored the first Cyber Insurance Catastrophe (CAT) bond recently, a new type of ILS or insurance linked security issued by a Bermuda entity. They announced the $45 million private placement on January 9, 2023. The bonds provide investors with a generous floating rate of interest and a return of principal in one year, provided that no single catastrophic event occurs across Beazley’s portfolio of cyber insurance policies that results in more than $300 million of losses. Any losses above $300 million incurred by Beazley on those policies as a result of that one event would be absorbed by the investors, up to the $45 million principal amount. The deal was marketed under an NDA, so not all of the details are available, but the bonds will not protect against losses from a state-sponsored cyberattack, which is typically excluded from cyber insurance policies as an act of war.…

The high court of Maryland has endorsed pro rata allocation under CGL policies in an asbestos bodily injury case, affirming the lower court and stating that “[t]he pro rata allocation approach—a longstanding precedent adopted by the [state intermediate appellate court] and a majority of other jurisdictions—is the correct standard.”…

Third party vendors, outsource providers, and cloud providers are critical to the operations of all organizations. Yet they also introduce a significant cybersecurity risk. Locke Lord’s Privacy & Cybersecurity group will present a complimentary, in-depth review of the key regulatory requirements for vendor cybersecurity, followed by a presentation of a…