M&S cyber insurance payment is worth 100 million pounds

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Marks and Spencer could claim loss of up to 100 million pounds from their cyber insurers following a Hack sustained This stole some customer data.

The cyber policy of the United Kingdom retailer allows up to 100 million pounds, according to the people who know the situation.

Alianz She is the first insurer of the hook for M&S losses, people added and are expected to pay at least the initial £ 10 million. Cyber ​​specialist Beazley It is also among the insurers exposed to losses to the retailer FTSE 100, according to the people who know the situation.

M&S first admitted on Tuesday that some personal data from customers were stolen as part The cyber attack This has left the retailer unable to accept online orders for almost three weeks. The retailer told customers that “could include contact details, date of birth and online orders”, but “does not include the usable card or payment details” or account passwords.

Was working with law agencies and government agencies, the FTSE 100 added.

The retailer will report their results throughout the next year and are expected to update the market on the consequences of the pirate.

The company may have lost its income to date for more than 60 million pounds, depending on the extrapolation of its medium -line sales. The attack on its systems also left M&S ​​struggling to keep the shelves provided in some food stores, which has probably reduced sales.

The price of retail shares has dropped around 16 percent since the attack on April 22, erasing 1.3 million pounds in its market capitalization.

M&S, Beazley and Allianz refused to comment.

The Cyber ​​Insurance de M&S coverage was expected to be organized by London -based WTW, Pagés in its entirety, said a senior market participant. He predicted that this would be the case, even if the rape was finally linked to a vulnerability with a third -party seller at M&S. WTW refused to make comments.

The policy would cover first part losses, such as lost sales and incident response costs, as well as third party losses, such as legal liabilities related to data breach, added the person.

The annual M&S insurance premium, currently less than 5 million pounds, could be double when the policy is renewed, if the retailer does not show insurers that he has improved his risk management practices, said the person.

After increasing during pandemic, cyber insurance premiums have generally been reduced in recent months. The insurers had begun to offer more generous coverage and more attractive terms, including the response times that fall from 12 to eight hours before the coverage arrived.

Only United Kingdom retailers could deal with more intense prices For cyber coverage after recent attacks, with online criminals also aimed at Harrods and the cooperative.

A great payment for M&S could act as a “concept test” for cyber insurance, said an insurance expert based in London, encouraging small and medium -sized companies to buy coverage.

Cyber ​​attacks have cost about 44 million pounds in the United Kingdom companies in lost revenue over the last five years, according to a November report from the Howden runner. He said that just over half the companies in the United Kingdom faced at least one incident during this period.