The International Underwriting Association has called for a market-wide protocol to improve the handling of cyber business interruption claims, arguing that greater coordination could reduce delays and improve efficiency.

In a new report, produced with Baker Tilly, the IUA highlights challenges in reviewing claims within cyber insurance tower structures. According to the association, current processes can be fragmented, leading to duplicated effort and inconsistent outcomes.

The paper, Split Market Reviews in Cyber BI Towers: Why It’s Time for a Rethink, proposes a framework covering fee-sharing arrangements and information flows between insurers.

Joe Shaw, director of claims at the IUA, said: “Each organisation, within often quite intricate insurance structures, is working towards the same goal – an efficient and fair resolution of the claim. Yet a lack of coordination can inadvertently introduce delays.

“A market protocol sitting within a tower policy wording, could provide clarity for all participants on what to expect if and when an incident occurs.”

Ben Hobby, partner at Baker Tilly, said: “Business interruption is often perceived as one of the more challenging aspects of the cyber claim process. We are therefore delighted to partner with the IUA on this report, where we share some of our thoughts and observations, based on our own claims experience, of what a market protocol could include to help smooth the process for insurers and policyholders alike.”

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