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Cyber-attack Stress Test Shows Underinsurance Danger

Wednesday, February 6, 2019   (0 Comments)

 

A joint report from Lloyd’s of London and Aon suggests that a coordinated global cyber-attack spread through email could cause cumulative economic damage ranging from $85-$193 billion.

The hypothetical attack, developed as a risk management stress test by the insurers, showed that potential claims payouts associated with business interruption, cyber extortion and incident response costs were estimated to come in anywhere from $10 billion to $27 billion. As recently reported by Reuters, the difference between actual damage and claims costs put the extent of current cyber-security underinsurance in stark relief.

The report added that more service-dominated economies such as the United States and Europe most likely would be vulnerable to higher direct losses.

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