Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cyber attack on Asia ports could cost $110 billion: Lloyd's

Published 10/29/2019, 09:27 PM
Updated 10/29/2019, 09:27 PM
Cyber attack on Asia ports could cost $110 billion: Lloyd's

Cyber attack on Asia ports could cost $110 billion: Lloyd's

By Simon Jessop

LONDON (Reuters) - A cyber attack on Asian ports could cost as much as $110 billion, or half the total global loss from natural catastrophes in 2018, a Lloyd's of London-backed report said on Wednesday.

Cyber insurance is seen as a growth market by insurance providers such as Lloyd's, which specializes in covering commercial risks, although take-up in Europe and Asia remains far behind levels in the United States.

The worst-case scenario in the report was based on a simulated cyber attack disrupting 15 ports in Japan, Malaysia, Singapore, South Korea and China. Some 92% or $101 billion of the total estimated economic costs of such an attack are uninsured, Lloyd's said.

The figure was calculated by simulating the impact of a computer virus carried by ships and which scrambles cargo database records at the ports.

The report was produced by the University of Cambridge Centre for Risk Studies, on behalf of the Cyber Risk Management (CyRiM) project, in partnership with Lloyd's.

Asia is home to nine of the world's 10 busiest ports and is a crucial part of the supply chains for the world's leading companies in sectors from autos to industrial goods, clothing and electronics.

The report estimated that the world's transport sector, including aerospace, would be hit the most, with economic losses totaling $28.2 billion. Manufacturing would take a $23.6 billion hit, while retail would face losses of $18.5 billion.

Countries with links to each port would also be hit. As such, Asian countries would be hit the most, with $26 billion in indirect losses, followed by Europe with $623 million and North America with $266 million.

"We know that the biggest assets for companies are not physical, they are intangible," said Lloyd's Chief Executive John Neal. "With the increasing application of technology and automation, these risks will become even more acute."

Latest comments

Just like my insurance broker.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.