The findings, published as part of Lloyd’s Futureset initiative, aim to enhance awareness and preparedness against extreme space weather events.
The scenario, developed in collaboration with the Cambridge Centre for Risk Studies, models economic losses across three severity levels. The least severe scenario estimates a $1.2 trillion global loss, while the most extreme event could see damages soar to $9.1 trillion—equivalent to a reduction in global GDP of up to 1.4%. The study identifies North America as the most financially vulnerable region, facing potential losses of $755 billion, closely followed by Europe at $697 billion. Greater China and Asia Pacific could suffer losses of $428 billion and $375 billion, respectively.
If such an event were to occur today, it could significantly disrupt essential infrastructure, including energy grids, satellite networks, and global communication systems. The repercussions would extend to navigation, financial services, and daily operations for businesses and governments worldwide.
To underscore the importance of resilience against solar storms, Lloyd’s is hosting a flagship event featuring the photography exhibition Life in the Sun’s Atmosphere: From Disruption to Resilience by renowned photographer Max Alexander. The exhibition, unveiled at the historic Lloyd’s Underwriting Room in London, explores the risks associated with solar activity and showcases advancements in fortifying critical infrastructure. The event is attended by key figures including Lloyd’s Chair Bruce Carnegie-Brown, Parliamentary Secretary for the Cabinet Office Abena Oppong-Asare MP, and The BBC’s Sky at Night presenter Professor Lucie Green.
Lloyd’s has been at the forefront of developing insurance solutions to manage the risks associated with solar storms. Currently, the insurer covers nearly a third of all global space risks, including comprehensive satellite protection. Other financial safeguards available through insurance policies include energy insurance, business interruption insurance, aviation insurance, marine insurance, and agriculture insurance.
Rebekah Clement, Lloyd’s Corporate Affairs Director, emphasised the importance of proactive risk management “Our research continues to highlight the need for businesses to be prepared and proactive against global risks. Historically, extreme space weather has been rare; however, by equipping businesses, governments, and insurers with data-based models, we’re encouraging effective preparation and stronger collaboration.”
Photographer and science communicator Max Alexander also highlighted the exhibition’s significance “The Lloyd’s Underwriting Room is synonymous with supporting the very limits of human exploration and knowledge gathering. My aim for this exhibition is to showcase not only the incredible power of the sun as the lifeblood of our solar system, but also the very real risks its power can present for our everyday lives and infrastructure.”
As the final instalment in a series of seven risk scenarios produced by Lloyd’s Futureset and the Cambridge Centre for Risk Studies, this latest report underscores the need for increased preparedness against the significant threats posed by extreme space weather.
