Lloyd’s of London Launches New Cyber Insurance Consortium – Source: www.darkreading.com

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NEWS BRIEF

Global insurance giant Lloyd’s of London has launched a cyber insurance consortium to create a new shared risk facility for the cyber insurance market, offering qualified organizations exclusive rates, simplified insurance process, and comprehensive coverage.

A shared risk facility is a network of insurance firms that agree to collaborate and share the underwriting risk of policies. The consortium brings together a global network of Moody’s-recognized AA-rated insurers and is designed to scale as additional insurers join the group. Through this model, insurers can deliver enhanced and more consistent insurance products and coverage, according to HITRUST.

Organizations seeking cyber insurance that have HITRUST certifications are eligible for lower insurance rates through the program, including a starting credit of 25% on premiums. The certification also allows for streamlined underwriting and a simpler application process. HITRUST said in a statement that some policies are being underwritten in “just one week.”

New policies under the consortium have a single-page exclusion model, and organizations that participate will have access to increased capacity as the consortium grows to make sure they have insurance products that meet their needs.

“By integrating HITRUST certification into our underwriting process, we’re able to offer tailored cyber insurance solutions that not only recognize but also reward organizations for their commitment to stringent security standards,” said Josh Ladeau, CEO of Trium Cyber, the underwriting lead for the initiative, in a statement

To enable this consortium, HITRUST developed a secure API allowing insurers access to detailed information about an organization’s HITRUST r2 certification. This way, insurers receive structured, consistent assessment data to facilitate the underwriting process. There are plans to expand eligibility in 2025 to other certification types, potentially including HITRUST’s AI Security Certification.

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