Willis confirms placement of M&S cyber policy

By Rebecca Delaney

May 19 - (The Insurer) - Willis has confirmed that it placed Marks & Spencer's 100 million pound ($133.8 million) cyber insurance policy, as the UK retailer enters its fourth week of disruption following a ransomware attack.

Willis confirmed to this publication that it is the broker for the M&S cyber cover but declined to provide any further detail.

Owing to the lengthy nature of the event, the cyberattack is likely to result in a full tower loss, a senior cyber market source told this publication.

Allianz leads the tower, with participation from CFC and Willis' CyXS facility, the source said. Separate reports have said Beazley also participated.

Allianz Commercial declined to comment on potential client relationships or exposures. CFC and Beazley declined to comment.

M&S disclosed the cyber incident on April 22, with the knock-on effects leading the UK retailer to cancel online orders and suspend recruitment as employees were ordered to work on personal devices.

A further statement from the retailer on May 13 disclosed that some personal customer data had been compromised, including contact details, dates of birth and online order histories.

It added that there was no evidence that the data had been shared, or that data relating to payment details or account passwords had been accessed.

Cyber Risk Insurer reported last week that the recent spate of cyberattacks on UK retailers – also including the Co-op Group and Harrods – may lead to rate increases for the sector at the upcoming July renewals.

Monica Tigleanu, cyber strategy director at BMS, told Cyber Risk Insurer that the incidents are likely to lead to rate increases for the retail sector, particularly if portfolio losses are higher than expected.

"Rate increases are to be expected now for the retail sector and capacity management in respect of accumulation by insured, industry sector and geography," she said.

"We should expect anywhere from 10% to 20% depending on the quality of the risk management in place for the retailer."