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Financial services

Cyber Attacks Cost European Businesses Over N300bn

Strategic Insights

— 1 min read

Almost half of businesses in four of the largest European economies - France, Germany, Italy, and Spain - reported at least one cyber attack over the last five years, resulting in costs exceeding N300bn (£261bn). Despite this, only 30% of businesses with annual revenues above N1m intend to buy cyber insurance for the first time within the next five years. Cyber insurance remains relatively low across Europe, with over 70% of companies in the four countries uninsured.

Key Takeaways:

  • Almost half of businesses in four of the largest European economies reported at least one cyber attack over the last five years.
  • The total direct costs of cyber attacks on businesses in France, Germany, Italy, and Spain over the past five years equated to over N307bn.
  • More than 70% of companies in the four countries are uninsured, which is higher than the UK's 61% statistic.
  • Cyber insurance can reduce cyber-related costs by 66%, a reduction of N204bn over the period of 2020-25.
  • The bulk of these savings stems from reduced severity (N112bn), with the remaining N92bn attributed to lower attack frequency.
  • The UK topped Howden's table of most cyber insurance offerings, with 39%, followed by France, Spain, and Germany tied at 29%.
  • Recent cyber attacks on retail giants M&S, Co-op, and Harrods have increased the appetite for cyber insurance in the UK.
  • M&S was able to make a claim of up to £100m from its cyber insurance policy, while Harrods and the Co-op did not have cyber insurance policies in place.

Statistics:

  • 45% of businesses in four of the largest European economies reported at least one cyber attack over the last five years.
  • Total direct costs of cyber attacks: N307bn.
  • Europe's cyber insurance penetration: 10-20% (according to Euroconsumers).
  • Number of companies in the four countries that are uninsured: over 70%.
  • Reduction in cyber-related costs with cyber insurance: 66%.
  • Total savings from cyber insurance: N204bn.
  • Reduction in severity: N112bn.
  • Reduction in attack frequency: N92bn.

Sources:

  • [1] Howden, British insurance broker
  • [2] City AM
  • [3] BusinessTech

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