Underwriters remain mindful of the PRA requirement that underwriters identify, quantify and manage their cyber exposures, both affirmative and non-affirmative. Further to Lloyd’s more specific mandate on affirming or excluding cover, the LMA has released LMA5402 (cyber exclusion) and LMA5403 (cyber endorsement) to address this issue.

The regulatory definition of cyber remains a challenge as there is no harmonised understanding of what the term encompasses. Work has been done within LMA committees to address this challenge, focusing on software as a basic concept with clear and definite components.

A working party has been established to review the current cyber clause in relation to GPS interference.

Alternative fuels is an increasingly complicated topic as the shipping industry is tasked with the transition towards low-carbon fuels to meet environmental goals. Using alternative fuels has direct safety and exposure implications for insurers, especially in hull and protection & indemnity cover.

The committee liaised with Lloyd’s Register to get a better understanding of the options available and possibilities under investigation. These include methanol, LNG and nuclear.

Increased cost of salvage refers to the higher-than-usual expenses involved in recovering a vessel or its cargo after a marine casualty. As salvage operations can often exceed the insured value of a vessel, those writing hull insurance should be aware of how this can affect premium pricing, coverage limits and the need for deductibles or sub-limits on salvage-related expenses.

Members contributed to the production of the revised LOF Default Agreement, LMA5654A, which is available for use as appropriate and is on the LWR.