Munich Re has added to the growing chorus of warnings about cyber risks, saying companies must consider the threat of turnover losses and reputational damage.

“Adequate insurance against data abuse should be a standard element of commercial insurance,” Munich Re board member Thomas Blunck said.

About 60,000 cyber crimes were recorded in Germany last year, the reinsurer says.

Resulting costs include business interruption, forensic investigation, defence against lawsuits, data and system recovery, notifying affected clients, repairing reputational damage and liability to third parties.

In the corporate sector demand for cyber risk cover is growing, with higher penetration in the US than Europe, Munich Re says.

Munich Re-owned specialty insurer Hartford Steam Boiler has launched a data compromise program for small and medium businesses that covers the cost of client notification.

The reinsurer has also established a partnership with Microsoft to address the challenges of commercial cloud computing services.