If you really want to know what the true cost of damage from a cyber attack is, you should ask the CEO of an insurance company. And someone did. The CEO of Lloyd’s insurance, one of the world’s largest and one that specializes in insuring for obscure risks, stated that cyberattacks cost the world economy around $400 billion a year. That is a huge number, by any measure. And it is obviously good (if you are in the insurance business) as premiums rose to a staggering $2.5 billion last year. And, John Chambers, the CEO of Cisco, has predicted that 2015 is going to be a worse year (in terms of cyberattacks).
So what are the options for companies facing these risks? Buy insurance. And beef up security.