A Lloyd’s of London report stated that a cyber attack on Asian ports could cost as much as $110 billion. The expected loss from cyber attacks on Asian ports is the equivalent of half the total global loss from natural calamities last year.
The figure was calculated by analysing the impact of computer virus carried by ships. The virus looks for cargo database records at the ports, the report said.
“We know that the biggest assets for companies are not physical, they are intangible,” Lloyd’s Chief Executive John Neal said. “With the increasing application of technology and automation, these risks will become even more acute.”
According to the report, the world’s transport sector, including aerospace will be affected the most, resulting in economic losses up to $28.2 billion. Manufacturing and retail will face losses up to $23.6 billion and 18.5 billion respectively.
The report was generated by the University of Cambridge Centre for Risk Studies in collaboration with Llyod’s of London.
Nine out of the world’s 10 busiest ports are located in Asia. These ports are a significant part of the supply chains for the world’s leading companies, including automobiles to industrial goods and electronics.
The report also found that Asian countries are expected to take a big hit with $26 billion in indirect losses. This is followed by Europe with $623 million and North America with $266 million.
The report indicated that robust simulated cyber attacks hurt 15 key ports in Japan, Malaysia, Singapore, South Korea and China. The total estimated economic costs of such an attack equalling to 92 percent, or $101 billion are uninsured.
Cyber risk that is not mentioned in the insurance policy would account for 57 percent of the total losses.