Cyber Outage – CrowdStrike

The recent global IT outage caused by a CrowdStrike software update prompted significant concern from the insurance market.

Potential for widespread claims

The outage affected businesses across various sectors, leading to potential business interruption and system failure claims. Insurers may face a surge in claims related to the CrowdStrike outage.

Understanding potential claims exposure and managing resources when claims arise is a concern for many. MDD has developed a resource for our cyber clients that aims to help you manage claims. The items include:

• Information you will need to gather or consider
• Typical considerations/questions by industry
• Typical document requests to make by industry

Clients we have spoken to so far have found this incredibly useful. To request this, please contact your local Cyber expert, or reach out to Glenn Silver on the contact information below.

Insurers and reinsurers will obviously closely examine policy wordings to determine levels of coverage and potential exclusions. This event highlights the importance of robust risk management and insurance protection. The full financial impact on the insurance industry remains to be seen. MDD stands ready to assist clients with significant claims exposure.

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How MDD Measures Cyber BI Losses

• Examine operational and financial records
• Analyze industry data
• Compare projected/actual performance before, during, and after the attack
• Examine potential non-loss related issues and mitigation opportunities
• Identify, segregate, and classify related expenses