Microsoft outage could generate $700 million in insured losses: Kovrr

Business Recorder reported that the Microsoft 365 and Exchange Online disruption could lead to about $700 million in insured claims. Kovrr co-founder Shalom Bublil put the preliminary range at $300 million to $1.4 billion, assuming service recovery by 1900 GMT on Friday.

The estimate uses roughly $16 billion in productivity-related economic losses, but insurance coverage may be narrower because some policies exclude accidental failures at technology providers and many small businesses lack cyber insurance. Microsoft said recovery was continuing across affected regions at 1300 GMT, with some users still facing intermittent access or email delays, and reported no indication of malicious activity.

Whether insurers pay will depend on policy terms, including cover for third-party system failures, waiting periods and proof of financial loss. Some brokers had received claims notices, while one reinsurer expected the impact to resemble the 2024 CrowdStrike outage, for which an earlier estimate placed insured losses at about $250 million.