Cyber attacks cost Europe €300bn in five years, warns Howden

Cyber attacks have cost businesses in France, Germany, Italy and Spain a combined €307bn since 2020, according to new research published by Howden.

The broker’s study, released today, found that almost half of surveyed companies in Europe’s four largest economies reported at least one cyber attack over the past five years.

Despite these losses, more than 70% of firms in the region remain uninsured against cyber risk, Howden warned.

“Howden’s report confirms the powerful role cyber insurance plays in mitigating one of the most critical threats facing businesses today,” said Jean Bayon de La Tour, head of cyber, international, at Howden.

“Cyber insurance is not just a protective measure, but a strategic enabler of resilience that accelerates recovery, strengthens risk management and reduces financial losses,” he added.

€204bn of avoidable costs

Howden’s analysis shows that €204bn of the losses recorded across the four countries between 2020 and 2025 could have been avoided through wider adoption of basic cyber security and insurance.

The broking firm argues that the benefits of risk transfer and improved governance significantly outweigh the costs.

Its modelling suggests that a company with €500m in annual revenues could save €16m over ten years by holding a cyber policy, equating to a 19% return on investment even before claims recoveries are factored in.

By extrapolating the impact of insurance and controls across the region, Howden estimates that cyber-related costs could fall by two-thirds, with reduced attack severity accounting for most of the saving.

Pressure on pricing

The research also highlights trends in the cyber market, noting that rates are down 22% globally from their mid-2022 peak.

Price declines have been most pronounced outside the US, with international markets seeing a 12% fall since January 2024, compared with a 5% drop in the US.

Howden warned that future growth depends on new business, with premium volumes needing to expand by 15% annually over the coming years.

The group said stronger uptake in underpenetrated markets such as continental Europe will be key to sustaining momentum.

Shay Simkin, chair, global cyber, at Howden, said: “Our research has quantified the costs of European attacks at roughly €300bn since the turn of the decade.

“The cyber protection gap is a societal issue that demands urgent attention, and at Howden, we are committed to working with clients and markets to build lasting resilience.”

Uptake potential

Encouragingly, the report found that 31% of businesses with revenues above €1m intend to buy cyber insurance for the first time within the next five years.

This still leaves a sizeable protection gap, and a big opportunity for the insurance industry.

A large proportion of undecided non-buyers also represents “a clear call to action for the market to engage, educate and convert interest into uptake,” the broker said.

Bayon de La Tour added: “With penetration still low and demand rising, Europe and other international markets offer significant growth opportunities.

“Yet, the market must do more to communicate this value and simplify its offering. Improving accessibility will be crucial to realising the huge potential in Europe and other underpenetrated markets.”