CrowdStrike cyber-incident to not affect global (re)insurers: Fitch
Date
7/23/2024 3:56:31 AM
(MENAFN) Fitch Ratings stated on Monday that the recent cybersecurity incident involving US-based provider CrowdStrike is not expected to have a substantial impact on the financial results of global (re)insurers. According to Fitch, the preliminary estimates for global insured losses, which are projected to be in the mid-to-high single-digit billions of US dollars, are unlikely to materially affect insurers' financial stability. However, Fitch noted that these estimates are subject to change as claims and litigation related to the incident continue to evolve.
The incident is anticipated to most significantly affect insurance lines related to business interruption, contingent business interruption, and cyber-insurance. Additionally, several smaller insurance lines, such as travel insurance, event cancellation, and technology errors and omissions, will also be impacted. Fitch highlighted that various factors will help mitigate the extent of the insured losses, including limited insurance coverage, high deductibles, sub-limits on claims, and the time element periods associated with business interruption claims.
For most cyber-related business interruption claims, the time element periods typically range from eight to 12 hours. However, industries that require continuous operation, such as hospitals and airlines, may experience more pronounced effects due to their need for round-the-clock availability and often less robust redundancy systems.
Following a major IT outage caused by a software update last week, CrowdStrike's shares experienced a sharp decline. On Monday, the company's stock fell an additional 13.46 percent after already dropping 11.1 percent on Friday, reflecting ongoing investor concerns and the broader impact of the incident on the company's market performance.
MENAFN23072024000045015839ID1108470229
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.