Extreme Cyberattack Could Cost as Much as Superstorm Sandy, Says Insurer Lloyd’s of London

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Extreme Cyberattack Could Cost as Much as Superstorm Sandy, Says Insurer Lloyd’s of London

By CircleID Reporter
July 17, 2017, 7:34 pm PDT Views: 5,207 Add Comment

A global cyberattack has the potential to cost $120bn in economic losses, roughly the equivalent of a catastrophic natural disaster like 2012’s Superstorm Sandy, a scenario described in new research by Lloyd’s of London and Cyence, a cyber-risk analytics modeling firm. Findings also reveal that despite the increase in cyber-insurance demand, majority of losses are not currently insured, leaving an insurance gap of tens of billions of dollars.

— “For the cloud service disruption scenario in the report, average economic losses range from US$4.6 billion from a large event to $53 billion for an extreme event. This is the average in the scenario, because of the uncertainty around aggregating cyber losses this figure could be as high as $121 billion or as low as $15 billion.”

— “In the mass software vulnerability scenario, the average losses range from US$9.7 billion for a large event to US$28.7 billion for an extreme event. And the average insured losses range from US$762 million to US$2.1 billion.”

By CircleID Reporter

CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.

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