Cyber Protection Gap a Growing Threat to Europe’s Economy, Says Munich Re
Global reinsurance leader Munich Re has issued a strong warning about the widening cyber insurance protection gap, calling it not only a strategic priority for the insurance sector but a “critical societal responsibility.”
Speaking at its 2025 Baden-Baden breakfast briefing, Munich Re highlighted the growing economic toll of cybercrime, which it estimates to cause nearly $10 trillion in global damage. The company noted that despite the rising scale and sophistication of cyberattacks, many small and medium-sized enterprises (SMEs) still underestimate the risks, leaving them dangerously exposed to potential financial and operational collapse.
Claudia Strametz, who leads Munich Re’s business for Germany and oversees cyber operations across Europe, emphasized the rapid evolution of the cyber insurance market over the past decade and a half. “Cyber insurance has grown from a virtually non-existent product to a global market with approximately €15 billion in premiums today,” she said. “Despite this progress, less than 5%—and possibly as little as 1%—of cyber risks are currently insured. Cyber insurance still represents less than 1% of the total property and casualty insurance market.”
Munich Re reiterated that addressing this gap requires collective action from insurers, governments, and businesses alike. “Closing the protection gap and strengthening cyber resilience is not just a strategic imperative—it is a critical societal responsibility,” the company stated.
To meet this challenge, Munich Re is investing in advanced modelling tools, specialized cyber teams, and cross-industry collaboration to better anticipate and manage emerging cyber threats. These initiatives aim to strengthen global cyber resilience and establish a more sustainable and robust cyber insurance market.
In related remarks, Clarisse Kopff, Member of the Board of Management at Munich Re, reaffirmed the company’s commitment to its stabilizing role amid rising climate-related, geopolitical, and macroeconomic challenges. She emphasized Munich Re’s focus on maintaining resilient, forward-looking solutions anchored in long-term partnerships with clients.