Cyber-attack can be costlier than Superstorm Sandy, Lloyd’s reports

Lloyd’s, one of the leading global insurance markets, published a report “Counting the cost: Cyber exposure decoded” which quantifies cyber-risk exposure. Cyber-attacks have the potential to trigger billions of dollars of insured losses, the report states. A cyber-attack could cost as much as Superstorm Sandy – in range between 50 and 70 billion USD. Uncertainty around aggregating cyber losses means the actual figure could be either much lower of higher than expected: the optimistic estimate is $15bn, the expected loss $53bn, and the pessimistic estimate is $121bn. At the same time, global cyber market is worth between $3 billion and $3.5 billion, Lloyd’s reports.