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Marks and Spencer’s insurance payout could be as much as £100m following the recent cyberattack where customer data was stolen, the FT has revealed.
Sources familiar with the situation told the FT that Allianz is the first insurer and is expected to pay around £10m.
On Tuesday (13 May), the retailer admitted that due to the nature of the cyberattack, some customer data has been taken, although it does not seem to include usable payment or card details.
The company is set to report its full-year results next week, which are expected to reflect the consequences of the recent attack.
According to the FT, the group could have lost more than £60m in revenues. The attack also left the retailer struggling to keep shelves stocked in some food stores, which has probably led to diminished sales.
According to a senior market participant, the group’s cyber insurance cover, arranged by WTW, was expected to pay out in full even in the event that the breach was ultimately linked to a vulnerability with one of M&S’ third-party vendors.
Sources also believe that the retailer’s annual insurance premium, currently under £5m, could as much as double when renewed if M&S does not show insurers it has improved its risk management practices.
M&S has been contacted for comment.
