Cyber Attacks On Financial Service Systems Can Cause Global Losses Of Up To IDR 67 Quadrillion

JAKARTA - Large cyberattacks on financial service payment systems could cause global losses of US$3.5 trillion (Rp67 kwadraliun), where most of the losses are not covered by insurance. Itiu was said by the commercial insurance market Lloyd's of London on Wednesday, October 18.

The United States will suffer a loss of $1.1 trillion over a five-year period of such attacks, which will cause widespread disruption to global businesses, according to a systemic risk scenario developed by Lloyd's and the Cambridge Center for Risk Studies.

According to Lloyd's, China will face a loss of US$470 billion and Japan US$200 billion during the same period.

"Global engagement in cyberspace means this risk is too great for one sector to deal with it on its own, therefore we must continue to share knowledge, expertise, and innovative ideas among governments, industry, and insurance markets to ensure that we build public resilience to the huge potential of this risk," said Lloyd's chairman Bruce Carnegie-Brown.

According to Lloyd's, cyber insurance generates more than $9 billion in gross written premiums by 2022 and is projected to grow to 13 billion to 25 billion US dollars by 2025.

Concerns about such insurance costs and whether to provide protection in war cases are blocking some potential customers, brokers said.

"More than 20% of the world's cyber premiums are placed in the Lloyd's market," said Lloyd's. Large cyber insurance such as Beazley and Hiscox (HSX.L) is one of the more than 50 insurance companies in the Lloyd's market.