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