Kathmandu. Munich Reich has warned that cybercrime could cost $14 trillion globally by 2028.
According to the latest report from Munich Rik, this damage estimate shows that cybercrime is becoming a systemic risk. “This could potentially harm not only individual entities but also businesses, critical infrastructure, and the economy as a whole,” Munich Relay said, adding that the projected losses reflect a rapid increase in both the frequency and severity of cyberattacks, driven by increasing digitalization, global connectivity and the increasing sophistication of cybercriminal networks. ’
The report lists ransomware, data breaches, business email agreements and distributed denial-of-service attacks as the main threats. Small and medium-sized enterprises are the most affected.
The report highlights a significant security gap. “Because many cyber risks are uninsured,” the report said, many organizations continue to underestimate vulnerabilities as attacks become more complex and costly. This not only leaves businesses with financial losses but also operational disruption and reputational damage. ’
According to the report, geopolitical tensions and advances in technologies such as artificial intelligence (AI) are also changing the cyber threat environment. “These factors increase the likelihood of large-scale interrelated events that can affect different regions,” Munich Reilly said. ’
As cybercrime grows to a multitrillion-dollar threat, insurance companies are expected to play a leading role in helping organizations manage risk, increase resilience, and respond more effectively to incidents. However, bridging the safety gap will require greater awareness, better risk assessments and closer collaboration between insurance companies, businesses and governments, the Munich Reilly suggests. –Agency
