Markel Insurance has introduced a new cyber insurance product offering coverage of up to US$5 million per risk for indirect losses resulting from acts of war.
The product, developed by Markel International’s cyber team in London, is designed to address a gap in cyber insurance related to losses from state-sponsored or geopolitically motivated cyber incidents. While full-scale cyber warfare remains infrequent, recent data indicates a growing trend.
According to industry research, state-sponsored attacks accounted for 35% of all data breaches in 2024, often impacting multinational companies directly or through collateral damage.
Traditional cyber insurance policies generally exclude coverage for war-related events. Markel said that its new product is intended to supplement existing cyber policies – whether issued by Markel or other insurers – by reinstating certain war-related coverages that may have been narrowed or removed due to shifting market exclusions.
The policy is structured as a wrap-around solution for large corporations. It specifically addresses scenarios in which insureds face more restrictive war exclusions under their current policies, such as the move from less restrictive Type 4 exclusions to more stringent terms. The new offering allows clients to insure against potential gaps created by these changes.
Markel has allocated a defined aggregate limit to support this product and will underwrite it under its own name, backed by its legal and financial resources. The insurer is initially offering limits of up to US$5 million per individual risk.
Chris Burgess (pictured), director of cyber at Markel International, said the launch responds to the evolving risk environment and client demand.
“We're conscious that some larger clients still want cyber cover for the indirect impact of war, and this product is a step toward helping provide them with a priced-for insurance policy that explicitly covers this particular risk,” Burgess said.
Elsewhere, Markel launched FintechRisk+, an insurance policy tailored for fintech companies. This policy offers comprehensive coverage, including financial services and technology liability, directors and officers (D&O) liability, theft, and cyber protection, with limits up to US$20 million.
Launched in September, the policy also includes enhanced business interruption coverage and new cyber extensions such as betterment, crypto jacking, reward coverage, and telecom fraud.
UK policyholders also benefit from additional services like 24/7 tax and legal advisory support, debt recovery assistance, contract reviews, and access to online cyber training and risk management tools via Markel's eRisk Hub.
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