Major cyber attack could trigger losses of £40.5bn, says Lloyd's

17 July, 2017, 22:17 | Author: Benny Bass
  • Cyberattack. Image YIUCHEUNG  Shutterstock

In a second scenario, which takes this time to assumption of attacks targeting the operating system of computers used by a large number of companies in the world, the average losses range between a 9.7 and 28.7 billion dollars.

The report forecasts that losses could range from $4.6bn (£3.5bn) for a large event to $53.1bn (£40.6bn) for an extreme event if a cloud service was disrupted through hacking.

The losses caused by such an attack range from as little as $15bn to as much as $121bn, with a $53bn average estimate, Lloyds said, with as much as $45bn of uninsured losses.

In the event of a massive cyberattack, the global economy could suffer a huge loss of $121 billion, which would be on par with costs incurred by devastating natural disasters such as hurricanes Katrina and Sandy, renowned insurance market Lloyd's of London said in a report on Monday.

They said that up to $45 billion (£34 billion) of the damage caused by a severe attack may not be covered by firms' cyber insurance policies as they are under-insured.

The analysis reveals that under the mass software vulnerability attack scenario, the cyber protection gap is between $8.9 billion for a large event and $26.6 billion for an extreme event, which means that just 7% of the economic losses are covered by insurance protection.

Underwriters need to consider cyber cover in this way and ensure that premium calculations keep pace with the cyber threat reality.

By understanding cyber-risk exposure, insurers can improve their portfolio exposure management, set appropriate limits and gain the confidence to expand into this fast-growing insurance class.

In an extreme event of cloud service disruption, Lloyd's of London warned economic losses could be as high as $121.4bn (£92.5bn) depending on factors such as the different organisations involved and how long the cyber attack lasts for.

"NotPetya" caused $850 million in economic costs, Cyence said. "To achieve this, data collection and quality is important, especially as cyber risks are constantly changing".

The aim of this report is to provide insurers who write cyber coverage with realistic and plausible scenarios to help quantify cyber-risk aggregation.

The company, which published the 56-page report in cooperation with computer security firm Cyence, said its findings also reflect how hard it is to model and understand an area in which there is so little historical data upon which to base assumptions.

Recommended:



Popular

Vehicle launches off hill, crashes on top of house
According to the fire department, no one was home at the time of the incident. 'It was determined that it was viable. Redding who was not home at the time of the crash, said this is not the first time something like this has happened.

Jose Quintana stellar in Cubs debut
Quintana was outstanding in striking out 12 Orioles over seven innings while surrendering only three hits without issuing a walk. Now, Chicago will try for more offense when the defending World Series champions continue a three-game series with Baltimore.

Toddler found in hot vehicle dies at hospital in Florida
A 1-year-old boy died after, police said, he spent hours in a hot auto in Delray Beach , leaving his family devastated. This would have made the temperature inside the vehicle much higher, with the police estimating it at 65 degrees.

Blue Apron shares hit as Amazon files for meal-kit trademark
Last month, Fast Company's Ruth Reader asked whether Blue Apron would even exist in five years . The Seattle-based Internet giant is trying to trademark the slogan, "We do the prep".

Blade Runner 2049 gets a insane new trailer
It's not perfectly clear whether or not replicants will replace humans, but the truth could kick off a war in the process. A brand new trailer for the sci-fi sequel is now live.