The Evolution of Siber Damage in Europe: New Dynamics for Risk Management and the Insurance Sector

The past ten years have seen a significant increase in both the frequency and complexity of cyberattacks in Europe. Financial institutions, manufacturing facilities, healthcare systems, and public infrastructure are now facing not only physical threats but also highly sophisticated digital attacks. As of 2025, the evolution of cyber damages is reshaping the risk management approach of the insurance sector.

1. Transition from Ransomware to Multi-Layered Attacks

While a single ransomware attack used to be the company's worst nightmare, today multi-layered attacks are on the agenda. Cybercriminals are using both data encryption and data exfiltration methods simultaneously. This situation forces companies to contend not only with operational disruptions but also with reputational damage and legal sanctions. Insurance policies now increasingly include advanced cyber coverage that encompasses such multi-dimensional damage scenarios.

2. Stricter Regulations

The new regulations introduced under the European Union’s NIS2 Directive and GDPR further increase companies’ data security obligations. As breach notification deadlines shorten and fines become more severe, legal costs covered by insurance and regulatory compliance expenses are gaining importance. At Pace Risk, we not only provide our clients with financial security but also offer consulting services to accelerate compliance processes.

3. Critical Infrastructure Targets

Critical infrastructures such as energy plants, transportation networks, and water and food supply chains are among the primary targets of cyberattacks. This situation necessitates including coverages for business interruption, supply chain disruptions, and third-party damages in policies. It is predicted that by 2025, these risks will be decisive both in policy pricing and risk assessment models.

4. Impact of Cyber Damages on Insurance Costs

The increasing frequency of damages in Europe is causing double-digit increases in cyber insurance premiums. In the reinsurance market, the scope and pricing of cyber coverages are being reevaluated. At this point, accurate risk segmentation and technology-based damage prevention solutions are becoming key to controlling insurance costs.

5. AI-Supported Defense and Risk Analysis

As attackers begin to use artificial intelligence, companies are inevitably turning to AI-based defense systems. Insurance companies aim to reduce claims ratios by encouraging preventive cybersecurity investments through policy discounts.

Pace Risk Perspective: The evolution of cyber damages in Europe once again highlights the importance of proactive approaches in risk management. With our international expertise and technical knowledge, we help our clients make cybersecurity investments an integral part of their strategic risk management plans.