Protection and indemnity mutual the American Club is working with US classification society ABS’s consultancy arm to come up with cyber security measures that will help reduce claims and protect shipowners.

The move is the second time the two US groups have partnered up after working together on a project to reduce trips and falls, a major claims cost for protection and indemnity insurers, last year.

The move comes as the perceived threat from cyber attack goes beyond data theft and corruption and presents a physical threat to the safety of a ship.

According to the pair attackers are now targeting the networks and devices that cover core operations, such as cranes, valves, navigation systems and engines.

A major concern for the insurance industry is that because the cyber threat is relatively new there is no existing data to rate the risk.

Although marine hull underwriters often add an cyber exclusion clause the American Club’s loss prevention director William Moore points out that P&I insurers are exposed to claims resulting from such an attack.

Moore said there is a need to increase the emphasis on the cyber threat in insurers' loss prevention measures.

Understanding the tools

“Having a better understanding of the tools available, the programmes that can be implemented and the integration of these in the marine industry will help us provide better services to shipowners and charterers globally,” he said.

The idea is that the American Club and ABS Consulting will work together to develop the defence measures and training that shipowners can put in place to protect the fleet.

In addition to the basic defences they want to develop capabilities to detect, respond and fix successful intrusions. The programme of measures is intended begin at the design and build stage of the vessel right through the operational life.

That will allow underwriters to assess if the right measures are in place and help them rate the risk more accurately.

A cyber protection plan is now legally required through in order to comply with the International Ship Safety Management (ISM) Code.

Ian Bramson, global head of cyber security at ABS, said: “Collaborating with the American Club to build education programs for their members and industry will give us a better understanding of the real challenges we are collectively facing.”