London airspace closure highlights aviation's tech dependence
CFC Director Graeme Newman said: “The aviation industry is probably the most tech dependent industry in the world. Technology failures and outages can cause significant financial loss and reputational damage as this latest incident demonstrates. Any computer malfunction whether at the Nats Swanick control centre, a major airport or an airline will grab headlines as it undoubtedly means disruption for the travelling public. This means having the right level of insurance is growing in importance.”
Standard commercial insurance policies do not cover business interruption as a result of technology or cyber related issues, while many of the specialist cyber insurance policies available in the market remain entrenched in their focus on privacy breaches and data loss.
Newman said: “Aviation businesses must ensure that system business interruption is included in any cyber insurance policy they purchase. Their exposure to non-physical perils is now as big if not bigger than the more traditional physical risks.”
CFC Underwriting is an award winning Lloyd’s MGA specialising in developing and distributing cutting edge insurance products for specific niche markets. Based in London, CFC is backed by 22 Lloyd’s Syndicates. CFC was named Underwriter of the Year at the 2010 British Insurance Awards, Underwriting Team of the Year at the 2011 London Market Awards, MGA of the Year at the 2012 Insurance Times Awards and won the prestigious Queen’s Award for Enterprise in International Trade in 2013.
