Global system failure, limited impact on insurance companies = Fitch

July 23, 2024 at 3:48 AM GMT+9 (some excerpts)

Regarding the global system failure caused by the software update of the cybersecurity company Cloud Strike, Fitch Ratings expressed the view on the 22nd that there is a high possibility that the global insurance/reinsurance industry can avoid a major financial impact.
According to preliminary estimates, claims will be between 5 billion dollars and less than 10 billion dollars, and it is expected that they will remain covered by the original insurance company.
This result could ease investors' concerns about compensation claims and lawsuits resulting from system failures. Also, it is said that the original insurance company has reinsured part of that risk.