While many pages have been written on the direct effect of cyberattacks, Lloyd’s report, prepared with inputs from KPMG and DAC Beachcroft, highlight the slowburn aspect of cyberattacks.
On Wednesday, Lloyd’s of London has stated in a report that businesses in Europe have underestimated the “slow-burn” effects of cyberattacks. Business across the European Union need to prepare for the consequences of such attacks, including fall in share price and loss of customers.
The report underscores the growing impact of cyberattacks, their short term and long term impact on businesses, including paying ransoms and public relation expenses.
Lloyd’s reports has been written along with inputs from KPMG, a consultancy firm, and law firm DAC Beachcroft.
“There is a lack of understanding as to what cyberattacks can mean,” said Inga Beale, Lloyd’s Chief Executive. “Businesses need to prepare for the full costs of a cyberattack.”
Beale went on to add, Lloyd’s has a 20% to 25% share of the $2.5 billion cyber insurance market.
In 2015, British broadband company TalkTalk suffered a significant data breach which although resulted in a one-off cost of $52 million, it also suffered slow-burn costs of more than $44 million, including an estimate for lost revenue, reads the report.
In recent months, ransomware attacks such as the Wannacry have surged and have infected 300,000 computers across 150 countries.
Earlier this week, a major ransomware attack hit computers in Russia, including its biggest oil company and the majority of its banks.
The attacks also hit Ukraine’s international airport as well as global shipping firm A.P. Moller-Maersk.