The world of cyber insurance, once valued at over $9 billion in gross written premiums in 2022, stands on the brink of explosive growth, predicted to burgeon to a staggering $13 billion to $25 billion by 2025, according to Lloyd’s estimates. However, this considerable growth still only covers a fraction of the colossal economic losses looming over businesses and society.
Unmasking the Grisly Numbers
Lloyd’s and the Cambridge Centre for Risk Studies based their calculations on global gross domestic product (GDP) as a pivotal metric to gauge the potential economic devastation from a global cyberattack. Their comprehensive five-year analysis unveiled a chilling $3.5 trillion global economic loss, encompassing three levels of severity: major, severe, and extreme.
In the most benign scenario, the projected losses hovered around $2.2 trillion, while the nightmare scenario envisioned an apocalyptic economic downfall, hovering at a mind-boggling $16 trillion.
As the world grapples with this impending cyber storm, certain nations find themselves perched precariously on the edge. The United States faces a potential loss of $1.1 trillion, with China trailing at $470 billion and Japan at $200 billion. These staggering numbers send an ominous message to governments, industries, and organizations worldwide.
