Markel launches first-of-its-kind affirmative cyber product for collateral war cover

Rhea-AI Summary

Markel Insurance (NYSE:MKL) has launched a groundbreaking cyber insurance product offering up to $5 million coverage per risk for indirect losses caused by acts of war. This innovative solution addresses a critical gap in traditional cyber policies, which typically exclude war-related damages. The product is designed as a wrap-around solution for large corporate clients, particularly in critical infrastructure, technology, finance, and energy sectors. The launch comes amid rising concerns over state-sponsored cyber attacks, which accounted for 35% of all breaches in 2024. This first-of-its-kind product specifically covers collateral damage from war events, providing coverage even when the insured's existing policy moves to more restrictive war exclusions. Markel will offer this specialized coverage under its own name with dedicated aggregate limits.

Positive

• First-to-market innovative cyber product addressing a critical coverage gap
• Targets high-value sectors (critical infrastructure, technology, finance, energy)
• Addresses growing market need with state-sponsored cyber attacks representing 35% of breaches
• Potential for market expansion beyond initial $5M per risk limit

Negative

• Limited initial coverage of only $5M per risk may be insufficient for large corporations
• Fixed aggregate limit could restrict overall market capacity
• Product limited to indirect war-related cyber losses only

Insights

Insurance Industry Analyst

Markel's new cyber war coverage product fills a critical market gap, potentially strengthening their position in the evolving cyber insurance landscape.

Markel Insurance has introduced a groundbreaking cyber insurance product that specifically addresses a critical gap in the market - coverage for indirect losses arising from acts of war. This is significant because such scenarios are typically excluded from standard cyber policies, creating a vulnerability for large organizations.

The product offers coverage of up to $5 million per risk and targets large corporate clients across sensitive sectors like critical infrastructure, technology, finance, and energy. This is particularly relevant given that 35% of all breaches in 2024 were state-sponsored attacks, according to the cited Bright Defense statistics.

From a market perspective, this represents strategic product innovation. By developing a "wrap-around" solution compatible with both Markel and non-Markel policies, the company is positioning itself to capture additional premium from clients facing more restrictive war exclusions (particularly those moving to Type 4 war exclusions).

The limited initial capacity suggests a cautious approach - Markel has "ring-fenced a fixed amount of aggregate limit" - indicating careful risk management while testing market response. This controlled expansion into a high-severity risk category demonstrates risk-balanced innovation.

For investors, this represents potential revenue growth through premium diversification and could enhance Markel's competitive differentiation in the cyber insurance market. The focus on large corporate clients suggests targeting higher premium opportunities while addressing sophisticated buyers' needs for comprehensive cyber protection against evolving geopolitical threats.

LONDON, May 13, 2025 /PRNewswire/ -- Markel Insurance, the insurance operations within Markel Group Inc. (NYSE:MKL), today launched an innovative, specialist cyber product to provide up to US$5 million of cover per risk for indirect losses arising from an act of war. 

Cyber risks are a significant concern for large organisations, particularly those in sectors including critical infrastructure, technology, finance and energy. Although full-scale cyber warfare events remain relatively rare, state-sponsored and geopolitically motivated cyber threats continue to increase in frequency and severity¹. State-sponsored cyber-attacks accounted for 35% of all breaches in 2024², with multinationals often being the targets or suffering collateral damage.  

The new product, developed by Markel International's London-based cyber team, provides cyber cover for collateral damage caused by acts of war, in other words losses arising from the indirect impact on an Insured from a war (whether declared or not). Cover for this peril is typically excluded in cyber insurance policies.

The new solution has been developed as a wrap-around product for large corporate clients with existing (Markel or non-Markel) cyber insurance policies. If the insured's existing policy is less restrictive on war (such as Type 4 war exclusions) and this is now moving to a more restrictive war exclusion that is not to the client's preference, then this Markel product could provide the insured with an option to insure some or all of that lost coverage. 

Markel has ring-fenced a fixed amount of aggregate limit for this specific product, which it will be offering under its own name, using its own legal and financial backing. It will initially be offering a limit of up to US$5 million per risk.

Chris Burgess, Director of Cyber at Markel International, commented: "With this new product, Markel is responding to the changing needs of our clients. We're conscious that some larger clients still want cyber cover for the indirect impact of war, and this product is a step toward helping provide them with a priced-for insurance policy that explicitly covers this particular risk.

"While we're initially beginning with a low limit, today's announcement is a step in the right direction towards providing a market-wide solution for these highly prevalent risks. We hope that providing clients with this cover will help give them the confidence and assurance that their needs are being heard and responded to." 

¹ World Economic Forum. Global Cybersecurity Outlook 2025 report. January 2025

² Bright Defense. Latest Cybercrime Statistics 2025. April 2025.

About Markel Insurance
We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers and clients – that differentiates us worldwide. 

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SOURCE Markel

FAQ

What is Markel's (MKL) new cyber insurance product coverage limit?

Markel's new cyber insurance product offers coverage up to $5 million per risk for indirect losses arising from acts of war.

Which sectors does Markel's (MKL) new cyber war coverage target?

The product targets large organizations in critical infrastructure, technology, finance, and energy sectors.

How does Markel's (MKL) new cyber war insurance work?

It's a wrap-around product for clients with existing cyber policies, providing coverage for indirect war-related losses typically excluded in standard policies.

What percentage of cyber breaches were state-sponsored in 2024?

According to the press release, state-sponsored cyber attacks accounted for 35% of all breaches in 2024.

Can non-Markel cyber insurance policyholders access this new war coverage?

Yes, the product is available as a wrap-around solution for both Markel and non-Markel cyber insurance policyholders.