European Companies Face Billions in Losses from Cyberattacks

A new report from Howden estimates that cyberattacks cost businesses in France, Germany, Italy, and Spain more than $405.5 billion between 2020 and 2025, writes L.S. Howard in Insurance Journal.

The study, based on a survey of senior IT decision-makers, attributes these losses directly to cyber incidents and emphasizes the importance of adopting stronger risk controls and insurance solutions to mitigate future exposure.

The findings derive from a YouGov survey of 1,248 senior IT leaders conducted in mid-2025.

Nearly half of the companies surveyed reported at least one cyberattack during the five-year period, leading to combined direct costs of more than $359 billion.

While the report excluded UK companies, it noted that the uninsured rate in continental Europe exceeded 70%, compared with 61% in the United Kingdom.

This uninsured exposure represents a substantial protection gap in the region, with insured companies consistently showing lower post-incident losses due to enhanced governance practices.

Howden’s modeling suggests that the broader use of cyber insurance and basic security measures could reduce cyber-related costs by as much as 66%, or approximately $239 billion, over the same five-year period.

Most of these savings would come from reducing the severity of incidents, with the remainder linked to lowering the frequency of cyberattacks. For instance, a company with annual revenues of $585 million could save about $19 million over a decade by maintaining cyber coverage, representing a 19% return on investment before factoring in claims recoveries.

The report reinforces the importance of risk transfer and governance frameworks. Attorneys counseling corporate clients should note that cyber insurance not only improves financial resilience. It also incentivizes stronger internal practices. Market dynamics such as declining premium costs may create opportunities to secure cost-effective coverage.