Page 32 - March 2022 Issue 604 Part 2

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Zainab Khatib (Vp – Cyber & Technology Practice at LOCKTON mena)

We have continued to witness the cyber market hardening as of January 2022,
with a further uplift in premiums, retentions, and an overall reduction in limits available

Zainab Khatib, Vp – Cyber & Technology Practice at
LOCKTON mena, was among the prominent people
who participated at the 5th annual Dubai World Insurance
Congress along with several of her colleagues. On the side-
lines of the event, Al Bayan Magazine met Ms. Khatib and
conducted an interview with her in which she evaluated the
cyber renewals of January 2022 and the results of Lockton
MENA. She further expressed her point of view regarding
the impact of the war between Russia and Ukraine on insur-
ance policies in the region and shed light on the outlook for
the cyber market in the coming year. Below is the Q & A.

LOCKTON ¿ÉcQGC

* How do you evaluate the cyber insurance sector in the region? a thorough review of their policy language. We just have to keep
- There has been a significant shift in the market. Two years ago, up to date with our underwriters and understand their position with
it was fairly easy to procure cyber insurance, with only a couple respect to such exclusions and the potential effects of sanctions
of minimum requirements needed by insurers. Then, primarily on coverage.
due to the rise of ransomware attacks throughout all industries
and the resulting losses and higher average cost of claims from * How do you evaluate the renewals of the first of January?
those attacks, underwriters were under to pressure to re-look at - With the renewal of most cyber treaties, we’ve continued to wit-
their underwriting models and pricing of the product. We are now ness the cyber market hardening as of January 2022, with a further
in a market where cyber insurers are requiring even greater uplift in premiums, retentions, and an overall reduction in limits
assurances of cyber security controls to be in place prior to available. On average we have seen cyber rate increases exceed-
procuring the policy, and the consequent increase in price ing a hundred percent. As the year goes on, it will continue to be a
means companies are having to catch up again both from a risk strained market for cyber specifically. I don’t think that the triple digit
management and budgeting perspective. We are seeing a gap rates will trail out until probably Q3 or Q4, which is in line with the
between the huge demand for the product, and a company’s eli- opinion of various reinsurers. The security requirements that clients
gibility to purchase it. have to meet will not give way, but we might start to see some light
* Do you think the war between Russia and Ukraine will have an impact at the end of the tunnel with respect to rates and available capacity
on the insurance industry in the region? towards the end of the year.
- Obviously there will be heightened focus when looking at the
war and terrorism exclusion clauses on policies. It is impossible * How do you evaluate the results of Lockton MENA?
to predict in advance whether the exclusions will apply, and so it’s - We are doing great. Lockton MENA has become the hub of
something that we can’t comment on at the moment. The applic- insurance expertise, where we have positioned ourselves as the
ability of any exclusion will be entirely dependent on the actual lan- go to broker across many classes of businesses and have a
guage of their policy and the facts of an attack, so the most we can proven track record across the region. Our focus will be contin-
do is guide clients to stay informed on the situation and conduct uing to invest in expertise and our specialisms, and bring best
practice to our clients across the region.

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