Merck's Cyber Attack Could Cost Insurers $275M

NEW YORK (Reuters) - Insurers could pay $275 million to cover the insured portion of drugmaker Merck's loss from a cyber attack in June, according to a forecast by Verisk Analytics Inc’s Property Claim Services (PCS) unit.

Merck, however, has not disclosed the magnitude of its uninsured losses from the “NotPetya” attack, which disrupted production of some Merck medicines and vaccines.

The company was among dozens of firms worldwide hit in the June 27 attack, which began in Ukraine, then rapidly spread through corporate networks of multinationals with operations or suppliers in Eastern Europe.