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The LMA 5403, in our view, fails the test that all modern
cyber policies need to pass. The LMA 5403 perpetuates
confusion, therefore increases uncertainty and inefficient
insurance purchase. There is only one party that loses out,
and that is the buyer of insurance.

Has this clause achieved any of its stated aims? In our
opinion, no – the clause does not do away with silent
cyber, and perhaps more disturbingly does not facilitate
affirmative cyber. On the back of this clause, non-cyber
underwriters are writing cyber risk blind, which reinforces
market indiscipline, and again the buyer is getting second
best from the existing insurance market.

The corresponding obligation of the insurance industry
is to be bolder and clearer, and with the marine industry
there is a real solution – AstaaraCyber. Talk to us about
affirmative, clear, calibrated cyber insurance designed for
the maritime market that will make a difference between
just surviving an incident and coming out the other side
stronger.

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