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A cyber attack of high magnitude could cost as much as hurricane Sandy

by

Mathieu Carbasse

July 26, 2017 12:00

Photo : Unsplash

According to one of the scenarios established in a research paper of Lloyd’sattack, to a cyber world could cause economic losses of us $ 53 billion (G$), or roughly the equivalent of a natural disaster such as hurricane Sandy of 2012.

In its report, titled Counting the cost: Cyber exposure decoded, Lloyd’s reveals the potential economic impact of two scenarios. The first concerns the destruction of a provider of cloud-computing services that would result in estimated losses of 53 G$. The second, based on a series of attacks on operating systems used by a large number of companies around the world, could cost up to 28.7 G$.

In comparison, hurricane Sandy, the second hurricane of the most expensive ever recorded, is generally considered to have led to economic losses of between 50 and 70 G$.

 

Hurricane Sandy affects the Guantanamo bay | Photo : DVIDSHUB/Wikimedia Commons

Many losses are not covered

«This report gives a real sense of the extent of the damage that a cyber attack could cause the global economy,» says Inga Beale, CEO of Lloyd s. Just as some of the worst natural disasters, the events of cybernetic can have a severe impact on companies and economies, trigger claims to multiple and significantly increase the costs of claims. «

The results also reveal that, while the demand for cyber-insurance increases, the majority of these losses are not currently insured, which leaves a gap insurance of several tens of billions of dollars.

For the scenario of cloud-based services, the share of uninsured could reach up to 45 G$, which means that less than a fifth (17 %) of economic losses is effectively covered by insurance. This gap could reach$ 26b to the scenario of vulnerability of mass, which means that only 7 % of economic losses are covered.

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