When the twin towers fell on 9/11, insurance carriers paid out claims of 44 billion dollars. Today, governments and insurance carriers are struggling with how to insure against similar acts of terrorism. An attack on cyberphysical systems could cause significant property damage and even loss of life, but most cyber terrorism policies exclude physical damage. The politically charged nature of terrorism, therefore, means that the biggest risk to insurers may be a government’s willingness to label something terrorism in the first place. The US modeled TRIA on Pool Re (the “Re” is for reinsurer), a similar program pioneered by the UK following IRA bombings in the early 1990s.”]
Source: https://www.csoonline.com/article/3290251/can-cyber-insurance-cover-acts-of-cyber-terrorism.html