Insurers need data-based models amidst trillion-dollar solar storm scenario

Greater China is forecasted to record $429b whilst Asia-Pacific at $375. 

Severe solar storm could lead to global economic losses of up to $2.4t over five years, with an expected loss of $17b from the event itself, according to Lloyd’s latest systemic risk scenario.

Greater China is forecasted to record $429b whilst Asia-Pacific at $375. 

“Historically extreme space weather has been rare, however, by equipping businesses, governments and insurers with data-based models we’re encouraging effective preparation stronger collaboration,” Rebekah Clement, Lloyd’s Corporate Affairs director, said in a press release.

The model outlines three severity levels, with losses ranging from $1.2t in the least severe case to $9.1t in the most extreme, equivalent to a global GDP reduction of 0.2% to 1.4%. 

North America is projected to experience the highest financial impact at $755b, followed by Europe at $697b, 

A solar storm of this scale could disrupt energy grids, satellite networks, navigation, communications, and financial systems worldwide. 

The findings were presented at a Lloyd’s event featuring the exhibition “Life in the Sun’s Atmosphere: From Disruption to Resilience” by space photographer Max Alexander.