Cyber Insurance and Cloud Cyber Attacks

July 31st, 2017 by admin Leave a reply »

According to the insurer Lloyd’s, a large cyber attack could cause $53 billion in economic losses which is almost same estimation as per 2012’s Superstorm Sandy. The report mentions the two possibilities. One where a disruptive attack which can lead to losses of $53 billion. Other includes an attack on computer operating systems which could lead to losses of $28.7 billion.

As per Lloyd’s estimation, the range of losses can vary between $15.6 billion to $121.4 billion. Average loss range is from $620 million for a large loss to $8.1 billion for an extreme loss.

“Just like some of the worst natural catastrophes, cyber events can cause a severe impact on businesses and economy, trigger multiple claims and dramatically increase insurers’ claims costs,” Lloyd’s CEO Inga Beale mentioned

“Underwriters need to consider cyber cover in this way and ensure that premium calculations keep pace with the cyber threat reality,” Beale added. “We have provided these scenarios to help insurers gain a better understanding of their cyber risk exposures so they can improve their portfolio exposure management and risk pricing, set appropriate limits and expand into this fast-growing, innovative insurance class with confidence.”

As per the RiskIQ study, cybercrime led to global economy $454 billion loss last year. it also mentioned that $858,153 is lost to cybercriminals every minute. Companies spent $142,694 per minute to protect.

“Today, an organization’s digital assets are subject to malware, malvertising, and phishing efforts on a scale never before seen, while rogue apps, domain and brand infringement, and social impersonation cause business disruption and material loss,” RiskIQ manager of content strategy Mike Browning wrote in a blog post examing the findings.

The report also mentioned that 818 pieces of unique malware are injected in the system per minute.

“As companies innovate Web, social, and mobile means to engage with their customers, partners and employees, threat actors will prey on business exposures and brands to capture users’ trust, access credentials, and sensitive data,” RiskIQ chief marketing officer Scott Gordon said in a statement. “This requires organizations to extend their security programs to monitor and mitigate threats outside the firewall.”

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