Now Lloyd’s of London warns of EMP…Industry giant says ‘extended outage’ could be measured in years
F. MICHAEL MALOOF
July 28, 2013
WASHINGTON – Lloyd’s of London, the world’s specialist insurance company providing services to companies in more than 200 countries, has issued a dire warning of the potential consequences of an electromagnetic pulse event from a solar storm, according to report from Joseph Farah’s G2 Bulletin.
Lloyd’s study, titled “Solar Storm Risk to the North American Electric Grid,” centered on the highly populated region from New York City to Washington, D.C., but added that other high-risk regions are in the Midwest and in regions along the Gulf Coast.
The fact a major insurance company is looking at the economic consequences of an EMP from a direct solar storm suggests there is increasing concern in the insurance industry that companies may be facing the danger of severe economic losses.
As a major trend setter in the insurance world, Lloyd’s unusual warning about the effects from an EMP could have an impact on insurance company coverage.
“A severe space weather event that causes major disruption to the electric network in the U.S. could have major implications for the insurance industry,” the Lloyd’s study said. “If businesses, public services and households are without power for sustained periods of time, insurers may be exposed to business interruption and other claims.”