Insurers' losses from global IT outage could reach billions
Insurers face billion-dollar losses due to a global IT outage caused by a faulty update from CrowdStrike affecting 8 million Microsoft Windows devices. Cyber insurance claims are expected to surge, impacting various sectors. Beazley remains positive, anticipating market changes.
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Insurers are facing potential losses in the billions following a recent global IT outage that disrupted industries worldwide. The incident, caused by a faulty update from security firm CrowdStrike affecting over 8 million devices using Microsoft Windows software, highlighted the systemic cyber risks present in today's interconnected software ecosystems. Experts anticipate a significant impact on cyber insurance claims, with estimates ranging from $1 billion to potentially higher figures. While some policies may mitigate losses through waiting periods and distinctions between cyber attacks and IT outages, various sectors are expected to experience business interruption and potential property damage claims. Despite the challenges, some insurers like Beazley remain optimistic about their profit guidance for the year. The event is seen as a potential catalyst for the cyber insurance market, potentially increasing demand and stabilizing prices after recent fluctuations. This incident serves as a stark reminder of the importance of robust cyber insurance coverage in the face of evolving cyber threats in the digital age.
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2 commentsBut at the same time, its most likely multiple failures that compounded to reach this. How cloudstrike handles this will be showing. On one hand you can understand that cybersecurity is a fast paced enviorment and sometimes that means rapidly tweaking and updating your signature methodology and constantly creating new methods to identify threats. But on the other hand if those updated filters and identification techniques generate false positives you lose trust. Like someone said on YouTube its surprising they don't do slow rollout, but then when you consider how important some clients are.....I'd bet clients don't want to be stuck as an A/B tester when the new configs could be stopping potential threats.
I'm newer to the security industry so please give me feedback on what my thought process is here, and any comments related to how you protect critical infrastructure in a rapidly changing threat environment.
"Are you going to indemnify me for the damage it causes" should be the reflexive response to anybody pushing checkbox security.
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