Insurance Pays Out a Sliver of Norsk Hydro’s Cyberattack Damages

On the heels of a severe cyberattack, aluminum giant Norsk Hydro has received only $3.6 million in cyber-insurance – just a fraction of the total costs in damage.

Overall, the Oslo, Norway-based company incurred between $60 million to $71 million in damages from the incident, which forced it to shut down or isolate several plants and send several more into manual mode. While Norsk Hydro said it expects more future compensation from its lead cyberinsurer, AIG, the payment received so far covers only 6 percent of the total damages.

“The cyberattack on Hydro on March 19 affected the entire global organization, with Extruded Solutions having suffered the most significant operational challenges and financial losses,” according to Norsk Hydro’s 2019 third-quarter report. “The financial impact of the cyberattack is estimated to around NOK 550-650 million [$60 to 70 million USD] in the first half year with limited financial effects for the third quarter. Hydro has a robust cyber-insurance in place with recognized insurers. Hydro has recognized NOK 33 million [$3.6 million USD] insurance compensation in the third quarter.”

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Source: ThreatPost