The CrowdStrike failure cost between $400 million and $1.5 billion, according to preliminary estimations.
On July 18, CrowdStrike, an independent cybersecurity company, released a software update that began impacting Microsoft systems globally.
The faulty CrowdStrike Falcon Sensor update and subsequent outage represent a loss ratio impact of roughly 3% and 10% on global cyber premiums of $15 billion today, revealed a research report.
This scale of loss could make the CrowdStrike event the largest single insured loss event in the history of the affirmative cyber insurance industry over the past 20 years.
Since this event began, Microsoft maintained ongoing communication with our customers, CrowdStrike and external developers to collect information and expedite solutions, expressed David Weston, Vice President, Enterprise and OS Security of Microsoft in the blog of the company.
"We recognize the disruption this problem has caused for businesses and in the daily routines of many individuals. Our focus is providing customers with technical guidance and support to safely bring disrupted systems back online," highlighted Weston.
Microsoft is collaborating with other cloud providers and stakeholders, including Google Cloud Platform (GCP) and Amazon Web Services (AWS), to share awareness on the state of impact.
"We’re working around the clock and providing ongoing updates and support. Additionally, CrowdStrike has helped us develop a scalable solution that will help Microsoft’s Azure infrastructure accelerate a fix for CrowdStrike’s faulty update. We have also worked with both AWS and GCP to collaborate on the most effective approaches," mentioned the VP of Microsoft.
The company estimated that CrowdStrike’s update affected 8.5 million Windows devices, or less than 1% of all Windows machines.
While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.
