Could a cyber-attack cost more than a natural disaster?

Lloyds of London, the world’s oldest insurance market has stated that serious cyber-attacks could be more damaging for the global economy than incidents such as world natural disasters. Lloyds state that a cyber-attack could cost around £92bn on average.

2 months ago, there was a huge cyber-attack world-wide, with one of the biggest hits in the UK being the NHS. WannaCry, the ransomware hacker affected around 57,000 businesses in 99 countries. Ransomware is on the increase, with the cyber liability insurance market expected to double in the next three years.

Lloyds have stated that the most likely malware scenario is that it takes down a cloud service provider with their estimated losses of $53bn. As this is an estimated figure, losses could be from as high as $121bn or as low as $15bn.

Altogether, with the total estimated cost of a worldwide ransomware attack, it will exceed the cost of hurricane Sandy in 2012, which costed and estimate of $50bn-$70bn.

Businesses need to make sure their computer IT systems are protected. The best way to do this is to take out cyber liability insurance. If you hold any information on customers or you rely on IT systems, then this is something which your business will need to invest in.

How can I protect against this?

Todd and Cue provide great cyber liability insurance for any company, no matter how big or small. Cyber liability insurance will give you peace of mind if any malware hackers manage to get into your system. For more information on cyber liability insurance click the link. Or get in contact with us on 0191 482 0050.

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