When Cyber Becomes Physical 2026: Understanding OT Risk, Loss and Claims

That happens when a cyber incident does not stay digital?

Recent events have brought that question into sharp focus. Cyber attacks on water utilities across the United States have interfered with operational systems, contributing in some cases to loss of water pressure and flooding. Jaguar Land Rover’s cyber incident halted production and led to £1.2 billion in cyber-related costs across two financial quarters. More recently, a reported cyber attack shut down a small UK power generator for four days. The UK Government has also warned that, at their most serious, attacks on critical infrastructure could lead to unsafe drinking water or loss of electricity.

Operational technology (OT) is the hardware and software used to monitor and control physical equipment and industrial processes. It includes the systems behind pumps, turbines, production lines, pipelines, power generation, ports and other critical infrastructure. Unlike conventional information technology, an OT failure can affect not only data and business systems, but also machinery, safety, the environment and the continuity of essential services.

This panel discussion will examine the distinctive exposures created by OT and how they differ from traditional IT cyber risk. It will explore how cyber incidents can result in losses within the Cyber Physical Damage market, including risk codes CZ and CH, as well as across Political Violence and Terrorism, Property, Energy and Marine classes of business.

The panel will consider how underwriters and risk engineers can identify, assess and price OT cyber exposures, including the information they should expect from insureds and the controls that matter most. From a claims perspective, the discussion will also examine the practical challenges that arise when cyber causation, engineering failure, physical damage, business interruption and policy coverage intersect.

Panel speakers

• José Seara, Founder and CEO, DeNexus
• Dr Lucy Frazer, Cyber Risk Analyst, Tokio Marine Kiln
• Jack Chamberlain, Deputy Class Underwriter – Cyber, Chaucer
• Ben Hobby, Partner, Baker Tilly

Moderator

• Neil Arklie, Head of Insurance Services, DeNexus

Audience

This event is open to Lloyd’s market cyber practitioners with an interest in cyber physical risk.

Full and Associate LMA members only.

Due to restricted numbers, if you register and subsequently are unable to attend, please email jackie.clark@lmalloyds.com.

WHERE: Microsoft Teams or LMA Presentation Room (Lloyd’s London EC3M 7HA)