Single cyber attack on Asian-Pacific ports could cost $110bn
A single cyber attack on Asia-Pacific ports could cost as much as $110bn (£85bn), Lloyd’s of London has claimed.
The historic insurance market has published a report warning that the global economy is unprepared for a scenario in which an extreme computer virus could infect 15 ports across Japan, Malaysia, Singapore, South Korea and China.
A lone cyber attack could cost as much as $110bn, which is roughly equivalent to half of all losses from natural catastrophes last year, according to Lloyd’s.
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Lloyd’s chief executive John Neal said that there were “high levels of underinsurance in Asia” which must “be urgently addressed”.
Nine out of ten of the world’s busiest ports are located in Asia, with a potential cyber attack threatening Singapore’s transportation sector in particular.
According to Lloyd’s, transportation, aviation and aerospace sectors would be the most affected ($28.2bn of economic losses in total), followed by manufacturing ($23.6bn) and retail ($18.5bn).
Aon found that in 2018 a total of almost 400 natural catastrophes drove losses of roughly $225bn, blighting insurance giants as they attempt to modernise the industry’s business model.
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The report showed that the global economy is “underprepared for such an attack with 92 per cent of the total economic costs uninsured”, leaving an insurance gap of $101bn.
Productivity losses would affect each country that has bilateral trade with the attacked ports.
While Asia would be the worst affected region from a cyber attack in the continent, the report concluded that Europe and North America would face spin-off losses of $623m and $266m respectively.