Insurers to see limited hit from CrowdStrike disruption, Fitch says

Fitch Ratings has indicated that the global insurance and reinsurance industry is unlikely to face significant financial repercussions from the outage caused by CrowdStrike’s problematic security software update, which disrupted internet services worldwide last week.

Preliminary estimates suggest that insured losses may range between mid-to-high single-digit billion dollars, with most claims likely falling under primary insurers’ coverage. This finding may ease investor concerns about potential claims and litigation related to the disruption. Insurers exposed to such losses often transfer some liability to reinsurers.

The CrowdStrike update caused crashes on computers running Microsoft’s Windows operating system, affecting various industries including airlines, banking, and healthcare.

Loretta Worters from the Insurance Information Institute explained that while standard cyber insurance policies cover cloud downtime from security, operational, or system failures within the insured’s own operations, they typically do not cover downtime resulting from non-malicious cyber incidents affecting third-party network service providers.

Fitch also noted that assessing cyber risk remains challenging for the insurance industry.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

error: Content is protected !!

Sign Up for CXO Digital Pulse Newsletters

Sign Up for CXO Digital Pulse Newsletters to Download the Research Report

Sign Up for CXO Digital Pulse Newsletters to Download the Coffee Table Book

Sign Up for CXO Digital Pulse Newsletters to Download the Vision 2023 Research Report

Download 8 Key Insights for Manufacturing for 2023 Report

Sign Up for CISO Handbook 2023

Download India’s Cybersecurity Outlook 2023 Report

Unlock Exclusive Insights: Access the article

Download CIO VISION 2024 Report

Share your details to download the report

Share your details to download the CISO Handbook 2024