Post by Vikram Patwa on Dec 3, 2011 8:39:54 GMT 4
Emerging Dimensions of Insurance - Cyber Insurance
Vikram Patwa
November 20, 2011
Abstract:
The risks involved in e-commerce today are similar to those faced in maritime shipping 300 years ago. If a server goes down, it takes everything on it down at the same time, often irretrievably. Any activity that takes down Web site - from hacker attacks to viruses - can mean big financial losses for business. Countless advertisers’ money vanishes during lost "click-through" opportunities. Sales languish as potential buyers are not able to access website. Information Security magazine estimates that businesses engaged in ecommerce are 57 percent more likely to suffer a computer-security breach than those who sell offline. Hacking happens to everyone. Even the giants like eBay, Yahoo!, and Google (Case of Gmail accounts theft in China) suffers from such risks. EBay, Yahoo!, and Eserve were among sites downed by a three-day hacking attack in February 1999. Hackers flooded the sites with so many requests that regular visitors could not access the sites. The end of 2003 and early 2004 brought a host of worms and viruses that seriously affected web service around the world, causing major financial damage to many companies. Among some of most prominent attacks in cyber space was of Love bug, a computer virus that carried the message "ILOVEYOU" and disabled computer networks around the world in 2000 with an error message “Driver Memory Error”. The Love Bug virus blanketed the web in only hours, affecting 20 countries and 45 million users i.e. around 10% of all the computers connected to internet and causing companies an estimated $8.75 billion in lost productivity and remediation efforts, according to the Insurance Information Institute.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1962326_code1749285.pdf?abstractid=1962326&mirid=2
Vikram Patwa
November 20, 2011
Abstract:
The risks involved in e-commerce today are similar to those faced in maritime shipping 300 years ago. If a server goes down, it takes everything on it down at the same time, often irretrievably. Any activity that takes down Web site - from hacker attacks to viruses - can mean big financial losses for business. Countless advertisers’ money vanishes during lost "click-through" opportunities. Sales languish as potential buyers are not able to access website. Information Security magazine estimates that businesses engaged in ecommerce are 57 percent more likely to suffer a computer-security breach than those who sell offline. Hacking happens to everyone. Even the giants like eBay, Yahoo!, and Google (Case of Gmail accounts theft in China) suffers from such risks. EBay, Yahoo!, and Eserve were among sites downed by a three-day hacking attack in February 1999. Hackers flooded the sites with so many requests that regular visitors could not access the sites. The end of 2003 and early 2004 brought a host of worms and viruses that seriously affected web service around the world, causing major financial damage to many companies. Among some of most prominent attacks in cyber space was of Love bug, a computer virus that carried the message "ILOVEYOU" and disabled computer networks around the world in 2000 with an error message “Driver Memory Error”. The Love Bug virus blanketed the web in only hours, affecting 20 countries and 45 million users i.e. around 10% of all the computers connected to internet and causing companies an estimated $8.75 billion in lost productivity and remediation efforts, according to the Insurance Information Institute.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1962326_code1749285.pdf?abstractid=1962326&mirid=2