Businesses show a lack of understanding of what cyber attacks can mean to their activities and need to prepare themselves for the full costs of an attack such as the Peyta assault sweeping around the world, warns Lloyd’s of London in a new report. Lloyd’s adds that firms can suffer significant losses in what it terms as slow-burn incidents.
Lloyd’s says the insurance market is developing a good understanding of the catastrophe risk posed by attacks aimed at cyber infrastructure for financial gain, ie attacks on data itself (hacking, denial of service, data-breach, theft of personal information). “These types of losses are – at least theoretically – capable of being quantified and controlled by appropriate underwriting and accumulation-management.”
Such cyber attacks mean good business for insurers. Lloyd’s currently has cyber attack insurance market share of between 20% and 25%, while AIG is looking to grow its activities in the area in Europe.
Image: Lloyd’s of London