Analysis shows insured business interruption losses from a cyber
catastrophe could reach an estimated $3.25 billion.
Kovrr, a predictive cyber risk modeling company, today released a new
report that predicts the potential financial damage that could hit
insurers in the event of a major email service provider in the UK
suffering an outage caused by a cyber attack.
Yakir Golan, Kovrr’s CEO said “The constantly growing and evolving
nature of cyber risk now affects all lines of insurance. This report
illustrates how a cyber catastrophe could cause similarly sized losses
to the 2007 UK property flood losses, which cost $4.8 billion. Insurance
and reinsurance companies ought to act now to make sure they are
properly managing their cyber exposures before a cyber catastrophe
Every day much of the world’s commerce is facilitated by the 290 billion
email messages that are sent worldwide by over 3.9 billion users. A
cyber-attack on an email service provider lasting hours, days or weeks
would result in an outage could lead to a large number of business
interruption claims and substantial losses for (re)insurance carriers.
The key characteristics of this type of cyber catastrophe are high
severity and low frequency, meaning, an event that does not occur
regularly but entails great damage potential, affecting numerous
businesses and leading to multiple claims on a (re) insurance carrier at
a single point in time.
The report, authored by Marco Lo Giudice and Shalom Bublil explains how
even though overall cyber premiums are significantly lower than property
premiums in the UK, the potential exists for a multi-billion dollar
insured loss similar to the risk of a flood catastrophe covered by
To learn more about Kovrr’s novel approach to modeling cyber
catastrophes please register
for the Kovrr Webinar on July 10th at 11a EST / 4pm BST.
Kovrr is a predictive cyber risk modeling platform.
Kovrr delivers global (re)Insurers transparent, real-time data-driven
insights into their affirmative and non-affirmative single, accumulated
and catastrophic cyber risk exposures.
The Kovrr platform is designed to help underwriters, exposure managers
and catastrophe modelers quantify and manage cyber risk at scale by
utilizing AI-powered predictive risk models that evolve in real-time to
continuously reflect new cyber threats.
About The Authors:
Marco Lo Giudice is SVP, Pricing at Renaissance Re and a member of
Kovrr’s Advisory board.
Shalom Bublil is one of Kovrr’s Co-founders and it’s Chief Risk Officer.
For interview requests please contact: email@example.com
More information is available at: www.kovrr.com