Kovrr, a predictive cyber risk modeling company, released a report today that estimates the potential for both large and catastrophic insurance losses to the United States manufacturing industry. The research is based on the recent discovery by IoT security company, Armis, of a group of vulnerabilities, dubbed URGENT/11 in VxWorks. VxWorks a widely used Industrial IoT operating system that’s embedded in over 2 billion devices.
“As the volume of cyber attacks continues to grow, it’s important for (re)insurers to understand the potential impact that these emerging threats can have on their portfolios as soon as they are made known,” said Shalom Bublil, Chief Risk Officer of Kovrr. “The recent Capital One breach is a great example of the manner in which cyber risk could cause the insurance industry to suffer painful losses. The team at Kovrr is focused on helping underwriting and exposure management professionals make better decisions by delivering actionable data to support the quantification of potentially large and catastrophic cyber loss events.”
The report covers two scenarios: One that looks at an attack on a large enterprise and the other on a widespread attack impacting 700 US manufacturers.
Key findings of the report include:
- How one event can have a major impact on a single enterprise, with losses estimated of approximately $7.3 Billion
- Why industry-wide losses could reach $18.7 Billion
- The importance of having the capability to conduct gap analysis and getting immediate visibility into potential exposure of new and emerging cyber threats
Kovrr’s predictive cyber risk modeling platform enables (re)insurers to transparently predict and price single, accumulated & catastrophic cyber risk.
Kovrr works with the world’s leading (re)insurers; delivering underwriting, exposure, and risk management professionals unparalleled visibility into their affirmative and silent cyber risk exposure.