(Bloomberg) – A global cyber attack could result in damages ofas much as $121.4 billion in an extreme event, comparable toeconomic 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 awidely-used cloud-service provider to fail would be $53 billion,depending on organizations involved and the length of the datastorage disruption, Lloyd's said in the report. Insurers could facetotal claims in that scenario ranging from $620 million to $8.1billion, according to the report.
|Market worth between $3-$3.5 billion
Prominent hacker attacks such as WannaCry in May and Petya in June have raised awareness of thevulnerability some companies have to cyber crime and insurers areseeking to get into the market by offering coverage for suchattacks. The global cyber-insurance market is worth between $3billion and $3.5 billion, Lloyd's estimates. It could rise tobetween $8.5 billion and $10 billion by 2020, according toreinsurer Munich Re.
|The second scenario used in the Lloyd's report, wherevulnerability in a widely used software was exploited by hackers,could result in losses of $9.7 billion for a large event and $28.7billion for an extreme event. Insurers would only cover $762million to $2.1 billion of the cost, the document said.
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