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CyberCube dubbed the recent Amazon Web Services (AWS) outage “Amazonk.” The outage disrupted major platforms, including Snapchat, Fortnite, Roblox, Coinbase, and Venmo. Cyber insurance companies are now assessing the financial fallout, with CyberCube estimating potential losses between $38 million and $581 million.
CyberCube’s Analysis Highlights Moderate Loss Ratios
CyberCube’s report notes that the outage “is expected to have a loss ratio impact for cyber insurers in the low- to mid-single digits.” The analytics firm described the overall insurance impact as moderate. They noted that early indicators point to most losses clustering toward the lower end of the range.
CyberCube activated its Cyber Aggregation Event Response Service (CAERS) after the October 20 outage. The company’s latest Security Incident Report (SIR) estimates that the outage affected over 2,000 large organizations and nearly 70,000 companies in total.
Industry Sectors and Geographic Reach
CyberCube found that technology and financial services firms suffered the most significant disruptions. “While the majority of AWS’s us-east-1 customers sit in the US,” the report noted, “the effects were certainly felt by companies domiciled in the UK, Europe, and elsewhere.”
Claims Outlook and Insurer Response
According to CyberCube, AWS may reimburse some customers to prevent litigation. The report adds, “In light of the short duration of the event, companies may decide it is not worth the hassle to claim.” Analysts expect these factors to keep claims low, reinforcing the low-loss estimate scenario.
Cyber Insurance Industry Reaction
CyberCube emphasized the industry’s measured response, stating that “this type of event is something that is modeled, priced for, and underwritten.” The incident demonstrates the sector’s resilience and preparedness for cloud service disruptions.
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