Cyber insurance policies are changing. Insurance providers are starting to insist upon their clients accepting elements of liability to be insured. They are of course seeking to minimise their risk and exposure, understandable given the continued rise in cyber-attacks. But something more serious is happening in the insurance sector in the wake of the pandemic. It is facing the most difficult period in its history, and today we look at why that is.

Ransomware and Increasing Cyber-Attacks

Many sources, ourselves included, have predicted a further growth in cyber crime this year. It’s a relatively simple equation: digital transformation plus a lack of awareness and nefarious actors equals more security incidents. Indeed, Gartner predicted last year that worldwide cyber security spending would surpass $130 billion by 2022.

Logically then, it was only a matter of time before this led to insurers taking note. This January 2021 article on the BBC website looks at ransomware payments being included in first-party cyber-insurance policies and is well worth a read.

Our cyber security experts help clients in a variety of industries including travel, and have done so for many years. We have first-hand knowledge of some insurance providers who are starting to request proof of Covid vaccination in order to offer cover for overseas travel. Below are some related articles, facts and tips that will hopefully shed more light on this. There is also a deeper dive into insurance as a whole, in an effort to further understand why big changes are afoot to affect us all.

Top Tip

As part of theICEway ecosystem of companies, we have many years’ worth of experience in travel and education. We help companies from these areas with data protection, governance, certification and more. As we have seen, security policies now need to be stronger than ever before, and our knowledgeable team are ready to help you. Contact us for an evaluation and we’ll ensure you have everything you need in place.

Cyber Insurance in Travel

According to Statista, 72% of cyber-attacks against the travel industry in 2019 targeted corporate and internal networks. The other 28% was divided equally between E-Commerce and the cloud. If nothing else, these numbers demonstrate the need for travel companies to adopt a robust security framework. Cyber crime is also fast-becoming a huge risk for travellers themselves, as this article from FCM Travel Solutions outlines.

The article includes tips on how to mitigate the risk, with some choice pointers as follows:

  • Switch your devices off at airport security
  • Disable Bluetooth and Wi-Fi to limit remote access to your devices
  • Limit the number of devices you take with you when travelling

Travel companies need to maintain strong security policies and also ensure that their clients are aware of security risks. In the post-Covid world, they also now need to be mindful of the implications the pandemic has generated. As aforementioned, a lot of travel moving forward will require proof of vaccination; how can this be monitored?

Insurance companies, like the majority of organisations, have had to revise their policies and procedures due to coronavirus. For example, Travel & General have amended their key benefits to prospective clients:

‘We can cover virtually any travel risk, including cover for COVID-19’.

Covid-19 has in fact had a far deeper and potentially devastating impact upon the insurance industry as a whole, however. Revisions such as the one included here are nothing compared to what might be on the horizon.

The UK Insurance Market

Over the years we have established professional contacts from all over the world. Though travel has been a particularly successful area for us, recent years have seen our experts combining with people in healthcare, education and insurance. The latter connections have meant that we have naturally taken a lot more interest in the UK insurance market, which is facing an incredibly testing period.

Multiple Issues

Regulation | Government Action | Soft Market | Claims


Solvency II was launched in 2016 across the EU. It has drained a lot of spare capital from the market as insurers’ requirements have doubled. As a result, many have either left the market or reduced their capacity.

Government Action

Former Minister of Justice Liz Truss changed the Ogden table rate from 2.5% to minus 0.75%, a move that is unlikely to be reversed. This has meant that insurers have to pay out more on larger personal injury claims. The government has essentially locked rates of minus 0.25% in England and Wales and minus 0.75% for Scotland – meaning further impacts upon settlements.

Soft Market

UK property rates were very low before the pandemic, meaning that for many insurers, property had become a loss-maker. The rates were in dire need of an increase but that has simply not happened.


At the start of 2020, storms Dennis and Ciara severely impacted property accounts. These were already losing money and insurers are struggling to correctly predict floods due to shifts in climate. They desperately need to build funds ahead of further events.


Covid-19 has changed the world. It has changed the way we live and the way we work. Cyber insurance policies and insurance in general have both been deeply affected, as have most other industries. Over time, ever more implications will almost certainly emerge for us all to face. At the start of the pandemic, we rallied together. We must remain together now and moving forwards, helping each other when possible.