European businesses face persistent cyber insurance challenges, with many reporting exclusions for war and systemic risks, gaps between traditional and cyber-specific policies, and frequent claims disputes over unclear triggers. Concerns have been raised that critical activities could become uninsurable.

These findings come from risk federation FERMA’s latest report, Demystifying Cyber Insurance: Today’s Trends and Tomorrow’s Challenges. It stresses that cyber insurance should complement, not replace, robust cyber security measures. Firms are urged to review all policies thoroughly, work with brokers to tailor coverage to specific exposures, and clarify the distinction between cyber and crime insurance.

Philippe Cotelle, chair of FERMA’s Digital Committee, commented: “A lack of awareness and understanding about cyber insurance products contributes to underestimating the value cyber insurance can bring to organisations, ultimately limiting the level of resilience that European businesses could achieve.”

FERMA calls for closer collaboration between insurers, brokers and insureds to build a more transparent, value-driven cyber insurance market that supports overall economic resilience.

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