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Which country will suffer the biggest losses from a global cyberattack?
A major cyber attack on the financial services payment system could result in $3.5 trillion in global losses, most of which will not be covered by insurance, Lloyd's of London insurance market said on Wednesday.
According to the systemic risk scenario developed by Lloyd's and the Cambridge Center for Risk Studies, the United States will suffer losses of $1.1 trillion over five years due to such an attack, which will cause widespread disruptions in global business. China and Japan will face losses of $470 billion and $200 billion, respectively, over the same period.
Lloyd's chairman Bruce Carnegie-Brown said: "The global interconnectedness of cybersecurity means that this is too important a risk for one industry to face alone. Therefore, we should continue to share knowledge, experience and innovative ideas at the level of government, industry and the insurance market in order to strengthen the resilience of society in the face of potential threats."
Gross cyber insurance premiums exceeded $9 billion in 2022 and are projected to grow to $13-25 billion by 2025, Lloyd's said.
However, concerns about the cost of such insurance and guarantees of its operation in the event of war are alienating some potential customers, brokers say.
More than 20% of the world's cyber awards are placed on the Lloyd's market. Major cyber insurers in the Lloyd's market include Beazley and Hiscox.
A major cyber attack on the financial services payment system could result in $3.5 trillion in global losses, most of which will not be covered by insurance, Lloyd's of London insurance market said on Wednesday.
According to the systemic risk scenario developed by Lloyd's and the Cambridge Center for Risk Studies, the United States will suffer losses of $1.1 trillion over five years due to such an attack, which will cause widespread disruptions in global business. China and Japan will face losses of $470 billion and $200 billion, respectively, over the same period.
Lloyd's chairman Bruce Carnegie-Brown said: "The global interconnectedness of cybersecurity means that this is too important a risk for one industry to face alone. Therefore, we should continue to share knowledge, experience and innovative ideas at the level of government, industry and the insurance market in order to strengthen the resilience of society in the face of potential threats."
Gross cyber insurance premiums exceeded $9 billion in 2022 and are projected to grow to $13-25 billion by 2025, Lloyd's said.
However, concerns about the cost of such insurance and guarantees of its operation in the event of war are alienating some potential customers, brokers say.
More than 20% of the world's cyber awards are placed on the Lloyd's market. Major cyber insurers in the Lloyd's market include Beazley and Hiscox.
