Under one-fifth of companies insured against cyber attacks

Cornelia Mascio
Luglio 17, 2017

The 56-page report estimated potential economic losses based on the examination of a hypothetical hacking of a cloud service provider and cyberattacks on computer operating systems run by global businesses.

The WannaCry ransomware attack in May cost $8 billion across 100 countries, says Lloyds.

The findings also reveal that, while demand for cyberinsurance is increasing, the majority of these losses are not now insured, leaving an insurance gap of tens of billions of dollars.

As highlighted by the Lloyd's and Cyence report, the potential economic and insured loss from a cyber event is huge and appears to be growing, and cyber scenarios such as this could help market players to better understand the potential impacts and costs of large and extreme cyber attacks. "Just like some of the worst natural catastrophes, cyber-events can cause a severe impact on businesses and economies, trigger multiple claims and dramatically increase insurers' claims costs... underwriters need to consider cyber-cover in this way and ensure that premium calculations keep pace with the cyber-threat reality". "Global risks can only be effectively dealt with if there is a common understanding of their importance and interconnected nature, and a readiness to engage in multi-stakeholder dialogue and action".

Average cyber attack losses are in the $4.6 billion to $53 billion region and actual losses could be as high as $121 billion, the report said.

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. The cloud service disruption scenario figure could be as high as $121bn or as low as $15bn, according to the report.

Under the mass software vulnerability attack scenario, economic losses range from $9.7 billion for a large event to $28.7 billion for an extreme event, with re/insurance industry losses ranging from $762 million for a large loss, to $2.1 billion for an extreme event.

As reported by The Guardian, Lloyds Chief Executive Inga Beale said: "This report gives a real sense of the scale of damage a cyber-attack could cause the global economy".

All that in spite of the rise in demand cyberassurance, the amounts covered are still limited, the deficit of insurance which may reach up to 45 billion dollars in the first scenario and $ 26 billion in the second, details the study.

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