Next event:

The QA Financial Forum: Chicago 2018

25 April, 2018
News and research on financial software quality assurance and risk management

Global Cyber Attack Could Cost $121.4 Billion, Lloyd’s Estimates

18 July 2017
A global cyber attack could result in damages of as much as $121.4 billion in an extreme event, comparable to economic losses caused by Hurricane Katrina in 2005, Lloyd’s of London said in a report.

Average losses from a scenario where an attack would cause a widely-used cloud-service provider to fail would be $53 billion, depending on organisations involved and the length of the data storage disruption, Lloyd’s said in the report. Insurers could face total claims in that scenario ranging from $620 million to $8.1 billion, according to the report.

Prominent hacker attacks such as WannaCry in May and Petya in June have raised awareness of the vulnerability some companies have to cyber crime and insurers are seeking to get into the market by offering coverage for such attacks. The global cyber-insurance market is worth between $3 billion and $3.5 billion, Lloyd’s estimates. It could rise to between $8.5 billion and $10 billion by 2020, according to reinsurer Munich Re.

The second scenario used in the Lloyd’s report, where vulnerability in a widely used software was exploited by hackers, could result in losses of $9.7 billion for a large event and $28.7 billion for an extreme event. Insurers would only cover $762 million to $2.1 billion of the cost, the document said.

The QA Vector 500: your route to the right partner

Looking for a quality assurance, IT risk, or testing partner? Then you need access our expertly researched resource tracking the most important 500 service providers, from the largest to the most specialist.

Sign up now

Get the latest
by email

Newsletter Sign-Up
First Name*
Last Name*
Email*

I understand my contact details will be entered into your database and used to contact me by email with QA Financial's newsletter. See our privacy policy here.

Opted-in to receive newsletter
Source - newsletter sign-up form