Lloyd's of London Cyber Insurance Requirements and Underwriting Standards B8: Apply the same rules to cyber treaty reinsurance and blended treaties

What does B8 require?

Syndicates writing cyber reinsurance (risk codes RY and RZ) are subject to the same requirements as insurance, with a slightly longer run-off for Type 4 and Type 7 business. The requirements also apply to blended treaties where cyber exposure exceeds 10% of the overall exposure or where Type 4 or Type 7 clauses are used in the underlying portfolio. For losses-occurring reinsurance, run-off cover may continue until the underlying cover expires. No dispensations were granted in the treaty market; cedants using clauses outside Types 1, 2, 3 and 5 need affirmative coverage grants. Syndicates supporting cedants with Type 4 or Type 7 exposed portfolios in 2024 must have had their tools, governance and processes reviewed by Lloyd's (a review for insurance business can be relied on); exemptions for urgent transitions are possible where gross limits exposed are minimal, and are less likely for proportional business. The rules extend to other treaty contracts that include cyber cover.