Lloyd’s cyber probe ‘advanced’ but online systems remain in shutdown

Lloyd’s took swift action on Wednesday when it reset systems and switched off all external connectivity after discovering “unusual activity” on its network.

The cause of the cyber threat is not yet clear, but Lloyd’s has been vocal in its support of sanctions on Russia, making it a potential target for cyber attacks.

A Lloyd’s spokesperson updated: “Following unusual activity detected on the Lloyd’s network, we are now at an advanced point in our investigations.

“These have been conducted by a dedicated team at Lloyd’s, together with two specialist partners.

“We isolated a number of external-facing systems as a precautionary measure and will reconnect them when we are confident they are fully secure. We will provide a more detailed update in due course.”

Attacks

Lloyd’s is the latest insurance business to suffer cyber-related problems.

Verlingue UK suffered an attempted cyber attack last November which cost it £121,807, according to a Companies House filing.

The extent of cyber breaches hitting intermediaries was revealed by Insurance Age last month after a Freedom of Information request to the Financial Conduct Authority.

The number of cyber breaches reported by insurance intermediaries rose from 12 in the financial year of 2020/21 to 15 in 2021/22.

This February Aon confirmed a cyber incident. In September last year Insurance Age reported on Aston Lark-owned DNA Insurance Brokers being the victim of a phishing attack.

A few months earlier, in May, One Call Insurance confirmed that it had been subject to a ransomware attack.

The government is so concerned about financial firms’ resilience to cyber threats and systems failings, legislation is underway to give authorities powers to oversee resilience of critical third-party system suppliers.

Products

The upside for the insurance industry is that cyber is becoming such a widespread threat, products are likely to become ubiquitous.

According to a report released last week from Global Insurance Law Connect, an alliance of law firms, cyber will become as widespread as public liability or professional indemnity.

The report detailed how insurers will become more selective with the cyber risks they insure as the cyber threat becomes more widespread and varied.

The report from Global Insurance Law Connect’s was taken following insights from 19 countries.

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