Businesses in Europe underestimate the "slow-burn" effects of cyber attacks and need to prepare more fully for a loss of customers, a fall in share price and other potential consequences, Lloyd's of London said in a report on Wednesday.
The risk of cyber attacks is rising and slow-burn effects are additional to short-term costs such as notifying customers, paying ransoms or public relations expenses, the report, written with consultants KPMG and law firm DAC Beachcroft, said.
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"There is a lack of understanding as to what cyber attacks can mean," Lloyd's of London Chief Executive Inga Beale told Reuters.
"Businesses need to prepare for the full costs of a cyber attack."
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Lloyd's has a 20-25 percent share of the $2.5 billion cyber insurance market, Beale said.
British broadband company TalkTalk suffered a data breach in 2015 which caused a one-off cost of $52 million, but also led to slow-burn costs of more than $44 million, including an estimate for lost revenue, the report said.
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Ransomware attacks are on the increase, the report said, such as the Wannacry attack which infected 300,000 computers in more than 150 countries last month.
A major ransomware attack this week hit computers at Russia's biggest oil company, the country's banks, Ukraine's international airport as well as global shipping firm A.P. Moller-Maersk.
Cyber crimes where attackers masquerade as chief executives to email finance staff and trigger fraudulent payments are also rising and causing "significant financial losses", the report added.
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