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Aon and Guidewire Launch Cyber Scenario for a U.S. Dam Attack
Analysis reveals ‘silent cyber’ risk could lead to an estimated
There are over 90,000 dams in the U.S., providing irrigation, hydroelectric power, flood control, and recreation. While technology and automation improve dam safety and operation, they also create new risks.
In this scenario developed by Aon and Guidewire’s Cyence Risk Analytics team, part of Guidewire’s Analytics and Data Services unit, a hacker seeks to create significant disruption in the U.S. by opening the flood gates at a hydroelectric dam. If such a scenario were to occur it would likely cause significant downstream flood damages, resulting in ‘silent cyber’ losses for insurers. Silent cyber risk is the potential for cyber perils to trigger losses on traditional insurance policies – such as property or casualty – where coverage is unintentional or unpriced.
Aon and Guidewire analyzed the potential impacts of the scenario at three dams, selected to reflect a small, a medium, and a large exposure respectively. The key findings were that a cyberattack could cause:
-
Major impacts not only to dam operations but also to the resilience of
local businesses and communities, with the highest economic loss
estimated at
$56 billion . -
Silent cyber exposure to insurers, with total insured losses of up to
$10 billion . By comparison, initial estimates of insured losses resulting from wind and storm surge damage from Hurricane Michael have ranged up to$10 billion . - A significant protection gap that would impact homeowners and businesses if such an event were to occur, with only 12% insured in one scenario.
The scenario is further outlined in the report ‘Silent Cyber Scenario: Opening the Flood Gates’ which is the latest in Aon’s Global Insurance Market Opportunities series.
Notes to editors
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About
Guidewire delivers the industry platform that Property and Casualty (P&C) insurers rely upon to adapt and succeed in a time of accelerating change. We provide the software, services, and partner ecosystem to enable our customers to run, differentiate, and grow their business. We are privileged to serve more than 350 companies in 32 countries. For more information, please visit www.guidewire.com. Follow us on twitter: @Guidewire_PandC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181025005301/en/
Source:
Aon
Alexandra Lewis, +44 207 086 0541
alexandra.lewis@aon.com
or
David
Bogg
david.bogg@aon.com
or
Andrew
Wragg
andrew.wragg@aon.com
or
Guidewire
Diana
Stott, +1-650-356-4941
dstott@guidewire.com