Artemis ILS NYC 2020

Menu

Reinsurance News

Silent cyber drives Petya loss to $2.7 billion, says PCS

23rd May 2018 - Author: Luke Gallin

The insurance and reinsurance industry loss from the Petya / NotPetya cyber attack continues to rise as a result of silent cyber exposure, with the loss now viewed as high as $2.7 billion by Property Claim Services (PCS), reports Artemis.

Cyber security imageAccording to Tom Johansmeyer, Co-Head, PCS Strategy & Development at ISO, in an article on Artemis, the company’s informal insured loss estimate for Petya / NotPetya is currently at $2.7 billion.

The insurance and reinsurance industry loss from the cyber breach recently moved upwards in response to development in one of the larger underlying accounts, and the silent cyber exposures are reportedly large and developing rapidly.

Silent cyber can occur when other types of insurance or reinsurance products fail to explicitly exclude cyber risks, which could result in an accumulation of cyber losses within other policies. It’s something the market has been talking about for a long time, and which has finally happened with the Petya / NotPetya attack, which appears to be one of the first cyber events that could qualify as a true cyber catastrophe.

According to the Artemis article, part of the reason Petya / NotPetya is particularly worrisome is the component of the insured loss composed of silent cyber.

PCS estimates that more than $300 million is attributable to affirmative cyber, meaning the rest is effectively cyber risk that insurers and reinsurers may not have been prepared to assume, or simply weren’t aware they were taking on.

Four of the silent cyber losses have reportedly developed to at least $100 million, with one, so far, someway above the $1 billion mark. The individual losses may have more impact than the aggregate in this case, since the industry likely didn’t see them coming, the Artemis article explained.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Mitsui Sumitomo enters Chinese life market with BoCommLife stake

MS&AD Insurance Group Holdings, Inc. subsidiary, Mitsui Sumitomo Insurance Company (MSI), Limited, has signed an agreement to acquire Colonial Mutual...

Close