Cyber cover of autonomous ships in the context of marine insurance law

Abstract

Maritime Autonomous Surface Ships (MASS) have become a reality in the 21st century, with Yara Birkeland leading the way since 2021. The maritime industry has experienced substantial transformation due to the rapid technological advancements, resulting in increased dependence on interconnected digital systems. This technological evolution has introduced novel security vulnerabilities, particularly cyber risks, which are not typically encountered by conventional vessels. Current marine insurance policies and regulatory frameworks inadequately address these cyber risks. Standard insurance clauses generally do not cover cyber incidents, and the existing regulations related to these risks are fragmented and insufficient. Therefore, there is a clear need to establish a tailored approach to address cyber risks associated with MASS.
This thesis investigates the regulatory and insurance challenges associated with MASS, focusing on autonomy levels 2 and 3. It evaluates whether regulatory frameworks and traditional marine insurance policies effectively accommodate the needs of these autonomous vessels and identifies existing gaps. The research examines the limitations of standard insurance policies in addressing cyber-related incidents, followed by an analysis of selected marine and war risk perils through the lens of English case law to evaluate their relevance to cyber risks faced by MASS within the framework of marine insurance law. The findings reveal that current forms of these perils fail to explicitly cover cyber incidents, leaving autonomous ships predominantly uninsured against cyber risks. The thesis recommends two main approaches to enhance cyber insurance coverage for MASS. The first approach suggests modifying the existing marine and war risk insurance policies to explicitly include coverage for cyber-related incidents. The second approach advocates for the development of specialised cyber insurance policies tailored to the unique needs of MASS. This research bridges a critical gap in the regulatory and insurance frameworks for MASS and calls for immediate reforms to comprehensively manage and mitigate cyber risks within the evolving maritime industry.

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Identifiers

ORCID for Alexandros X.M. Ntovas: orcid.org/0000-0001-5310-7117

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