Cyber insurers should note the debate going on in London regarding reform of the war exclusion clause in cyber insurance. The perpetrators of cyber incidents are often untraceable and it is difficult to ascertain whether they constitute state-sponsored acts of war subject to the war exclusion clause.

There is at least one pending action where the insurer has relied on the policy exclusion of ‘hostile or warlike action’ as a reason to reject the claim. There is no doubt that cyber attacks can be used for hostile and warlike purposes and the wording of the exemption must be considered by insurers and brokers.