Cyber insurance increasingly important

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Global network conceptConfirming the World Economic Forum’s view that cyberattacks rank alongside natural disasters as the most serious threats to civilisation, Lloyd’s of London now estimates that a serious hack could cost the global economy as much as major recent hurricanes such as Harvey, Maria, Irma, and Katrina – in excess of $100 billion.

Lloyd’s, the world’s oldest insurance market, estimates that an attack on a cloud service provider could result in losses ranging between $15 and $120 billion – resulting in massive insurance claims. Another potential cyber disaster would be an attack on a computer operating system used by a large number of organisations internationally, which at present are mostly uninsured against this type of risk.

Governments and businesses involved in financial services, healthcare, technology, retail, and hospitality are particularly threatened and should be taking out cyber cover as a matter of priority. At present, the report from Lloyd’s estimates the insurance cover shortfall could be around $26bn for a mass vulnerability situation and $45bn for a cloud services disaster.