For the cloud service disruption scenario in the report, average economic losses range from $4.6 billion from a large event to $53 billion for an extreme event.
"This report gives a real sense of the scale of damage a cyber-attack could cause the global economy". A lack of historical data on which insurers can base assumptions is a key challenge.
Lloyd's chief executive Inga Beale said underwriters needed to consider cyber cover and ensure premiums kept pace with the reality of the threat to technology systems.
Lloyd's and Cyence have produced a report that highlights potential economic losses of up to $121 billion from cyber attacks with less than a fifth being covered by re/insurance, revealing a cyber protection gap in the tens of billions of dollars. This mostly involved business interruptions and computer repairs.
The Lloyd's report follows a United States government warning to industrial firms about a hacking campaign targeting the nuclear and energy sectors.
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In June, a global wave of cyberattacks that began in Russian Federation and Ukraine and spread to western Europe and across the Atlantic wrought havoc on government and corporate computer systems. It encrypted data on infected machines, rendering them inoperable and disrupted activity at ports, law firms and factories.
Among those identified are a malicious hack taking down a cloud service provider - this could cost anything between $15billion and $121billion. By then, the code will have spread to the provider's customers, like financial services companies to hotels. But those losses could also go as high as $121.4 billion or as low as $15.6 billion depending on the organization and its response. The actual figure could in fact be as much as £40.5 billion, accroding to a new report by Lloyd's of London.
Finally, around $45 billion of this amount may not be covered by cyber policies due to underinsuring of companies, the study finds.
Average losses for a scenario involving a hacking of operating systems ranged from $9.7 billion to $28.7 billion.
The threat of cyber attacks continues to rise, and in response so to is demand for cyber coverage and the desire among insurers and reinsurers to develop adequate, affordable and effective cyber risk solutions.