Ransom software works by encrypting data. Typically, hackers offer a pass code to victims of an attack, enabling them to retrieve the data in return for cryptocurrency payments.
Business interruption is usually the biggest cost following a cyber attack, but businesses are able to reduce those costs with better back-up systems, such as through the use of cloud providers, the report said.
Most cyber insurance business is in the United States, but growth in the $15 billion global cyber insurance market is likely to be fastest in Europe in the next few years, given lower penetration levels currently, the report said.
Smaller firms are less likely to buy cyber insurance, partly due to lack of awareness of cyber risk, the report added.