Closing cyber protection gap a critical societal responsibility: Munich Re

Munich Re has warned that the sizeable cyber insurance protection gap, which directly exposes individuals and businesses, makes closing the gap and bolstering cyber resilience not just a strategic priority for the insurance industry, but a “critical societal” responsibility.

Speaking at its 2025 Baden-Baden breakfast briefing, Munich Re underscored the scale of the threat, noting that cybercrime is estimated to inflict approximately $10 trillion in economic damage globally.

The briefing also highlighted that despite the growing sophistication and frequency of cyberattacks, small and medium-sized enterprises (SMEs) continue to underestimate the existential risks posed by hackers, leaving them particularly exposed.

Claudia Strametz, who leads Munich Re’s business for Germany and is responsible for cyber business in Europe, commented, “Over the past 10 to 15 years, cyber insurance has experienced remarkable growth, evolving from a virtually non-existent product to a global market with approximately €15 billion in premiums today.

“Munich Re has been at the forefront of this development. Despite this progress, less than 5% and possibly as little as 1% of cyber risks are currently insured, and cyber insurance still only accounts for less than 1% of the total property and casualty insurance market.”

At its Baden-Baden breakfast briefing, Munich Re reiterated that the substantial cyber insurance protection gap poses direct risks to both individuals and businesses.

“Closing this protection gap and strengthening cyber resilience is therefore not just a strategic imperative for the insurance industry—it is a critical societal responsibility,” the reinsurance giant emphasised.

To address this challenge, Munich Re said it is continuously enhancing its capabilities, investing in advanced modelling tools and specialised cyber teams to better understand and mitigate emerging cyber risks.

“The commitment to building cyber resilience is demonstrated through active collaboration across the industry. These efforts are designed to lay the groundwork for sustainable market growth and for a robust and future-ready cyber insurance market,” Munich Re concluded.

In related news, also at the Baden-Baden breakfast briefing, Clarisse Kopff, Member of the Board of Management at Munich Re, observed that amid escalating climate-related risks and the ongoing impacts of geopolitical and macroeconomic instability, the firm remains committed to its stabilising role—anchored in long-standing client relationships and a focus on resilient, forward-looking solutions.