A severe solar storm could cause global economic losses of £1.9trn over a five-year period, according to the latest Lloyd’s Futureset scenario report. Europe would account for £540bn of those potential losses, the report suggests.

The scenario is one of seven produced by Lloyd’s and the Cambridge Centre for Risk Studies.

A solar storm is a sudden and intense burst of radiation and energetic particles from the Sun. If large enough and directed towards Earth, the resulting ‘space weather’ has the potential to severely damage critical infrastructure and create significant disruption across multiple industries and our everyday activities.

Rebekah Clement, corporate affairs director at Lloyd’s, says the insurance industry is well equipped to help businesses prepare for future solar storms.

“Our research continues to highlight the need for businesses to be prepared and proactive against global risks," she commented. “Historically extreme space weather has been rare, however, by equipping businesses, governments and insurers with data-based models we’re encouraging effective preparation stronger collaboration.”


Image of Artemis IV Frame courtesy of the European Space Agency

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