CyberCube estimates AWS outage could cost $581 million
CyberCube estimates insured losses from the Amazon Web Services outage on Oct. 20 will range from $38 million to $581 million. The disruption affected more than 2,000 large organizations and roughly 70,000 total companies that depend on AWS infrastructure. Snapchat, Fortnite, Roblox, and Coinbase were among the platforms that experienced service interruptions.
The cyber risk analytics firm expects most claims to settle near the lower estimate. AWS plans to compensate affected businesses for downtime, which should reduce insurance payouts and limit litigation. The technology and financial services sectors faced the greatest impact because they require constant system availability.
The brief outage may discourage many companies from filing claims. CyberCube says insurers have sufficient capacity to absorb losses from cloud service failures. The firm used its Portfolio Manager Version 6 to calculate potential industry exposure after activating its response service for the event.
