A stress test has shown that a severe space weather event could become the largest insured loss event in history, with the US insurance industry losing $333.7 billion, according to a new report by the University of Cambridge Centre for Risk Studies. In addition, such an event would cause direct damage to US electricity grids, resulting in power blackouts, and would have a major impact on the US economy. "There is increasing interest in understanding extreme space weather as an emerging risk in the insurance industry," the report says.
A stress test has shown that a severe space weather event could become the largest insured loss event in history, with the US insurance industry losing as much as $334bn, according to a new report by the University of Cambridge Centre for Risk Studies. In addition, such an event would cause direct damage to US electricity grids, resulting in power blackouts, and would have a major impact on the US economy. "There is increasing interest in understanding extreme space weather as an emerging risk in the insurance industry," the report says.