Global cyber-attack could be as costly as Hurricane Sandy

East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

The report, which looked at the potential consequences of attacks on cloud service providers and operating systems, compared the fallout to that of a natural disaster.

In this first scenario, average economic losses ranging between $ 4.6 billion for an important event and $ 53 billion for a major event.

That figure is the average estimate but the report said that given the uncertainty in calculating cyber losses, they could be as high as $121.4 billion or as low as $15.6 billion, depending on which organisations were involved and how long the cloud service disruption lasted.

A major cyber attack could cost the global economy $53bn (£40bn), City stalwart Lloyd's of London has warned.

The findings also reveal that, while demand for cyber insurance is increasing, the majority of these losses are not now insured, leaving an insurance gap of tens of billions of dollars.

They said that up to $45 billion (£34 billion) of the damage caused by a severe attack may not be covered by firms' cyber insurance policies as they are under-insured.

More news: Here are some of the new emoji coming to iOS 11

Underwriters need to consider cyber cover in this way and ensure that premium calculations keep pace with the cyber threat reality. And, in the most extreme cases, losses could rise to as much as $121bn.

Meanwhile, uninsured losses for other businesses would range from $9.7bn for a large event to $28.7bn for an extreme event and average insured losses range from $762m to $2.1bn.

The insurance gap could be as high as $26bn for the mass vulnerability scenario - meaning that just 7% of economic losses are covered.

The report, which was co-written by risk analysis firm Cyence, found that the NotPetya ransomware, which spread from Ukraine to businesses around the world, caused $850 million worth of damage to the world economy. "To achieve this, data collection and quality is important, especially as cyber risks are constantly changing".

Pete Banham, cyber resilience expert at Mimecast, suggested that the doomsday scenarios painted in the report highlight the growing issue of cyber-risk aggregation.

The company, which published the 56-page report in cooperation with computer security firm Cyence, said its findings also reflect how hard it is to model and understand an area in which there is so little historical data upon which to base assumptions. "Leveraging Cyence's unique cyber risk platform, we're excited to see insurers providing more capacity, bringing innovative products to market with greater confidence and creating a more robust and sustainable insurance market".

Related News:

  • SUV winds up on roof of house

    SUV winds up on roof of house

    Although Redding was was able to maneuver himself around in the living room after the crash the house may not be habitable again. A speeding SUV driver hit an embankment, went airborne and became stuck on top of a person's house, authorities said.
    People Injured After Being Ejected From Boat in Indiana

    People Injured After Being Ejected From Boat in Indiana

    Ten people, including the driver, were injured after they were ejected from an out-of-control boat Saturday in a lake in Indiana. The 21-foot boat ran amok in Lake Gage at about 30 miles per hour after the operator and nine others were thrown yesterday.
    Police Release New Sketch of Suspect in Indiana Teens' Slayings

    Police Release New Sketch of Suspect in Indiana Teens' Slayings

    German and Williams, of Delphi, vanished February 13 along a trail near their hometown about 60 miles northwest of Indianapolis. An earlier photo of a suspect was released by Indiana State Police of a suspect seen on the trail where the girl's were found.
  • Price proves he's still got it after Quintana dazzles in Cubs debut

    Price proves he's still got it after Quintana dazzles in Cubs debut

    The pitching is fifth in the National League in ERA (4.10) but needs improvement from their starters, who have been inconsistent. Davis just gets better as the inning progresses - the first batter of the inning usually has the best chance of getting a hit.
    Nigerians Top Of The List With Overstayed Visas In Us | See Details

    Nigerians Top Of The List With Overstayed Visas In Us | See Details

    Many seasonal businesses and members of Congress have pleaded with Kelly to issue the visas, citing an urgent need for workers. Last year, the federal government allowed 13,382 additional visas beyond the statutory cap to meet seasonal demand.
    Gujarat HC Dismisses Essar Steel's Petition Against RBI

    Gujarat HC Dismisses Essar Steel's Petition Against RBI

    In a major win for the Centre and its war on corporate bad loans, the Gujarat HC has rejected Essar Steel's plea against the RBI . The Gujarat High Court on Monday dismissed a plea by Essar Steel India Ltd, which challenged a Reserve Bank of India order.
  • 1-year-old boy found in hot auto  dies at Bethesda Hospital

    1-year-old boy found in hot auto dies at Bethesda Hospital

    Delray Beach police said a 1-year-old boy died Saturday afternoon after he was found in a hot vehicle Saturday afternoon. Carly Saint Saveur said the BMW belonged to the boy's father, Action Saint Saveur. "I'm scared for him.".
    China Maintains Steady Growth In Q2

    China Maintains Steady Growth In Q2

    In the first half, the growth rate was also 6.9 percent, the National Bureau of Statistics (NBS) said in a statement. On a quarterly basis, GDP added 1.7 percent from 1.3 percent in the first quarter matching estimates.
    PayPal Integrates its Mobile Payments with Samsung Pay Wallet

    PayPal Integrates its Mobile Payments with Samsung Pay Wallet

    PayPal is focused on delivering seamless mobile commerce experiences and extending this reach through strategic partnerships. Effectively, Pay users can now use their PayPal balance to make purchases anywhere - in-app, online and in eligible stores.
  • DeAngelo Williams Calls Dave Gettleman a 'Snake', Says He'd Play for Panthers

    DeAngelo Williams Calls Dave Gettleman a 'Snake', Says He'd Play for Panthers

    The Carolina Panthers on Monday announced that Dave Gettleman has been "relieved of his duties" as GM. Panthers owner Jerry Richardson said the decision was not easy and took much thought.
    Assam floods: Death toll reaches 59, threat of diseases looms

    Assam floods: Death toll reaches 59, threat of diseases looms

    Sarma said, almost 4 thousand villages have been affected in 29 districts in the current wave of floods. Almost 1.2 million people were affected by the floods in 24 of the state's 32 districts.
    Russian Federation  urges unconditional return of U.S.  compounds

    Russian Federation urges unconditional return of U.S. compounds

    The issue of the closure of the two Russian compounds is on the agenda again in Washington on Monday, with a meeting between U.S. Undersecretary of State Thomas Shannon and Russian Deputy Foreign Minister Sergei Ryabkov.


Most liked

China conducts 11-hour live fire drills in Tibet region
The " South China Morning Post " quoted an observer as saying that the show of strength was likely intended as a warning to India. The Chinese state-run media has also been openly talking of war and of teaching India a "lesson" like the defeat of the 1962 war.

Australian Minister Offers Smart Retort To Trump's Rating Of French First Lady
That's the same number of people who cite the White House-Russia scandal as their top issue going into the congressional elections.

United Kingdom awards $8.7 billion worth of contracts for 250mph rail line
The long-awaited HS2 rail project could "double the number of rush hour seats" for Leeds commuters, it has been revealed today. Costain said HS2 has said it may award Costain two main work civil construction - S1 and S2 - packages, under a joint venture.

Joe Biden memoir coming out November 14
At last year's Miami Book Fair , the impossible ticket to get was the one that got you in to see 2016 presidential hopeful Sen. His book chronicles 2015, which Biden considers the most momentous and challenging year in his life and career.

Accord 2018 - First 10-Speed Transmission FWD sedan, Launched In US
The main novelty is the new 10-speed automatic transmission, but again with the Sport you can bundle the six-speed manual. With an all-new design as well as mechanicals, this is the tenth-generation model of the popular Honda Accord .

EasyJet CEO Dame Carolyn McCall appointed as new ITV chief executive
Broadcasting group ITV today said it has appointed EasyJet chief executive Carolyn McCall as its next boss. She has helmed easyJet for seven years and was previously group CEO of the Guardian Media Group .

The New Allegations Against R. Kelly, Explained
Kelly of keeping young women at his residences against their will as part of a sex-oriented "cult". This would not be the first time Kelly has come under fire for actions against younger women. " R.

New Horizons Flyover of Pluto
The mapping and rendering were done by Paul Schenk and John Blackwell of the Lunar and Planetary Institute in Houston. The clips shared by NASA provide a glimpse of the complex terrain of Pluto.

Tim Burton's version of Dumbo has been revealed (and it's terrifying)
Peregrine's Home for Peculiar Children ) is playing a French trapeze artist named Colette who is employed by the movie's villain. And he'll be bringing his dark magic to bear on one of Disney's more emotional tales, this time with a brand new storyline.

High amount of marijuana discovered in new Ford cars made in Mexico
The marijuana, divided into 32-pound, half-moon-shaped packages, was found in 15 cars in four OH counties, according to CNN . Officials are now trying to figure out who put the pot in the vehicles and who apparently did not retrieve it.

India, Pakistan Army exchange heavy fire along LoC in Rajouri
India's ministry of defence spokesperson Lieutenant Colonel Rajesh Kalia said he had no knowledge of the incident. On Monday, a minor girl was killed by the Pakistani forces in Balakot Sector, Poonch in Jammu and Kashmir .

Tekken 7 welcomes Fatal Fury star as incoming DLC character
Once the grand champion of that game's tourney was crowned, Katsuhiro Harada was brought on stage to drop some exciting news. No other characters have been confirmed just yet, but it's likely we'll see a few more announced in the months ahead.

Republicans delay health care action as Sen. McCain recovers from surgery
Two Republicans , Rand Paul of Kentucky and Susan Collins of ME , have already said they'll vote against the measure. Additionally, insurers have largely panned the GOP health care proposal, especially for a Sen.

Australian woman who called 911 shot dead by Minneapolis police
More than 200 people, including social activists, gathered for a vigil Sunday near the spot where Damond died hours earlier. The City will continue to provide updated information on this incident, and the BCA's investigation, as soon as we have it.

Emily Blunt is in spit spot form as Mary Poppins
They're teetering on a crisis thanks to the ruthless manager of Fidelity Fiduciary, William Weatherall Wilkin (Colin Firth). Jack helps him pull it down to reveal that none other than Mary Poppins is holding it.