Russia-Ukraine cyberwarfare may propel claims in global insurance markets

Further, litigation costs for insurance companies could also grow as policyholders might attempt to resolve denied cyber claims through litigation at an accelerated clip. (Credit: Oleksii/stock.adobe.com)

Since the start of the Russian invasion of Ukraine, a surging wave of cyberattacks materialized, and DBRS Morningstar anticipates insurance companies in Europe and North America will see an uptick in claims and litigation costs as a result.

Although acts of war are typically excluded from cyber policies, according to DBRS Morningstar, the current situation will make attributing the attacks to specific actors difficult as insurers will need to show that the attack and claim are not related to a state-sponsored attack or performed by a group serving as a proxy for a government. Morningstar noted cyberwarfare is typically not acknowledged by state actors.