A major Amazon Web Services outage on Monday disrupted a wide range of online services, including Amazon, Lloyd’s Bank, Etsy, Verizon and Vodafone, illustrating the systemic risk posed by concentrated cloud provider dependencies, and the vulnerability of digital ecosystems to a single region or critical service failure.

Commenting on the incident, cyber risk analytics provider CyberCube said that with disruptions extending 15 to 16 hours and most waiting periods in the 8 to 12-hour range, the outage could represent a moderate cyber re/insurance event. Primary impacts are likely to be felt on system failure contingent business interruption coverage, with potential exposure to incident response and data restoration costs, it added.

“The outage affected a broad array of critical services across sectors with significant cloud reliance. While not all losses will be insured, the event could drive CBI claims, particularly among large enterprises with high sensitivity to service continuity,” it said.

The disruption originated in AWS’s US-East-1 region, caused by domain name system resolution issues within the EC2 internal network. AWS confirmed that all systems were fully restored later the same day.

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