A major cyberattack on a system could lead to global losses of $3.5 trillion, with much of it not covered by insurance, commercial insurer Lloyd's of London.
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According to a systemic risk scenario developed by Lloyd's and the Cambridge Centre for Risk Studies, the United States could suffer losses of $1.1 trillion over a five-year period from such an attack, which would cause widespread disruption to global business activity.
According to Lloyd's, China would face losses of $470 billion, while Japan would face losses of $200 billion over the same period.
“The global interconnectedness of cyber threats means it is too significant a risk for any one sector to address alone and that is why we must continue to share knowledge, expertise and innovative ideas across government, industry and the insurance market to strengthen society’s resilience to the potential scale of this risk,” said Lloyd’s chairman Bruce Carnegie-Brown.
Cyber insurance overall raised more than $9 billion in 2022 and is expected to grow from $13 billion to $25 billion by 2025, according to Lloyd's.
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Brokers say some potential customers are being put off by concerns about the cost of insurance and its coverage in the event of war. More than 20% of global cyber insurance premiums are placed on Lloyd's, the company said.
Leading cybersecurity insurers Beazley and Hiscox are just a few of the more than 50 insurers operating in the Lloyd's market.
There are several specific examples and cases that support the claim made by Lloyd's of London, regarding the IT world. Let's examine some of them to get a better picture of the situation.
Cyberspace is presented as a well-organized and ancient battlefield, a field in which cellular networks around the world are exposed to attacks.
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One of the clearest examples is the WannaCry Ransomware Attack in 2017. This massive, global attack initially hit Britain's National Health System, locking down systems, blocking access to files, and demanding a ransom to restore access.
Additional incidents:
- The large-scale NotPetya attack in 2017, similar to WannaCry, managed to block and lock down systems around the world, causing widespread damage and disruption to operations.
- In 2016, Yahoo announced that it had been the victim of one of the most significant data breaches in history, with more than 1 billion accounts affected.
The prevalence of technology in our modern lives has led to increased exposure to cyberattacks. Therefore, it is essential that we fully understand their impacts and take all necessary measures to protect ourselves.
Source: Reuters
