Major cyber attack could result in global losses of $3.5 trillion, report

by Karen Faulkner, Worthy News Correspondent

(Worthy News) – British commercial insurance market Lloyd’s of London warned Wednesday that a massive cyber attack on a financial services payments system could lead to global losses of $3.5 trillion, with much of it not covered by insurance, Reuters reports.

According to a systemic risk scenario developed by Lloyd’s and the Cambridge Centre for Risk Studies, such an attack could cause the United States to lose $1.1 trillion over a five-year period, Reuters reports.

Meanwhile, China could lose $470 billion in losses and Japan $200 billion over a five-year period, the Lloyd’s report said.

“The global interconnectedness of cyber means it is too substantial a risk for one sector to face alone and therefore we must continue to share knowledge, expertise and innovative ideas across government, industry and the insurance market to ensure we build society’s resilience against the potential scale of this risk,” Lloyd’s chairman Bruce Carnegie-Brown said in a statement.

The Lloyd’s report noted that cyber insurance saw over $9 billion in gross written premiums in 2022 and is forecast to grow to $13 billion to $25 billion by 2025, Reuters said. Lloyd’s market holds over 20% of the world’s cyber premium.

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