Cyber attacks cost European businesses over €300bn as insurance uptake lags
Almost half of businesses in four of the largest European economies reported at least one cyber attack over the last five years, resulting in costs exceeding €300bn (£261bn).
According to a new report by British insurance broker Howden, the cyber attacks on businesses in France, Germany, Italy, and Spain over the past five years equated to over €307bn in direct costs.
Despite this, cyber insurance remains relatively low across Europe, as more than 70 per cent of companies in the four countries are uninsured, which is higher than the UK’s 61 per cent statistic.
Howden’s analysis stated that with cyber coverage, the total cyber-related costs could fall by 66 per cent, a reduction of €204bn over the period of 2020-25. The bulk of these savings stems from reduced severity (€112bn), with the remaining €92bn attributed to lower attack frequency.
The report noted that those surveyed, 31 per cent of businesses with annual revenues above €1m, said they intend to buy cyber insurance for the first time within the next five years.
Growth opportunities ahead
The UK topped Howden’s table of most cyber insurance offerings, with 39 per cent; the next on the table is France, Spain, and Germany tied at 29 per cent.
However, the recent cyber attacks that have been making headlines about businesses and government entities have increased the appetite for cyber insurance in the UK.
After the attacks on retail giants M&S, Co-op, and Harrods, experts told City PM that these incidents could drive increased demand for cyber insurance and force insurers to ask more questions when offering coverage.
M&S was able to make a claim of up to £100m from its cyber insurance policy, whereas Harrods and the Co-op did not have cyber insurance policies in place.
Jean Bayon de La Tour, head of cyber, international, Howden, said: “Cyber insurance is not just a protective measure, but a strategic enabler of resilience that accelerates recovery, strengthens risk management and reduces financial losses.”
“With penetration still low and demand rising, Europe and other international markets offer
significant growth opportunities,” he added.