Silent Cyber Scenario: Opening the Flood Gates
Guidewire and Aon have published this joint report written by Matt Honea (Director of Cybersecurity at Guidewire) and Jon Laux (Head of Cyber Analytics for Aon’s Reinsurance Solutions business). This report is part of Aon’s 2018 Global Insurance Market Opportunities (GIMO) series.
The report is based on a new scenario for a hypothetical cyberattack by hackers on a U.S. hydroelectric dam. Using experts and data from Cyence Risk Analytics and Aon, the scenario shows:
- Major impacts not only to dam operations but also to the resilience of local businesses and communities, with the highest economic loss estimated at $56 billion
- Silent cyber exposure to insurers, with total insured losses of up to $10 billion (by comparison, initial estimates of insured losses resulting from wind and storm surge damage from Hurricane Michael have ranged up to $10 billion)
- A significant protection gap that would impact homeowners and businesses if such an event were to occur, with only 12% insured in one scenario
Download the white paper to understand how insurers can use scenarios such as this one to stress-test their portfolios against new and emerging perils created by cyber risk. With that knowledge, insurers can take steps to mitigate risk through reinsurance as well as by working with businesses to increase their resilience.