Ransomware Ransom Demands Rise 47% in Germany 2025, But Majority of Companies Refuse to Pay

In 2025, ransomware ransom demands in Germany soared by 47% compared to the previous year, signaling an intensifying cyber threat landscape for businesses. According to the American cyber insurer Coalition, despite the sharp increase in demands, a record 86% of affected companies chose not to pay the ransom, demonstrating growing resistance against cyber extortion.

The rising menace has caused significant concern among small and medium-sized enterprises (KMU), many of whom fear becoming targets. In response, specialist insurer Beazley launched a new cyber insurance product named 'Quantum', aimed at the European market to help companies better manage cyber risks.

However, alongside the surge in ransomware incidents, a recent Hiscox Global Protection Gap Report highlights a striking knowledge gap among Germany’s self-employed and small business owners about their insurance coverage. Only 16% of entrepreneurs understand the risks covered by their professional liability insurance, and just 21% are aware of what their cyber insurance actually protects them against. This lack of awareness has created coverage gaps in about 70% of these businesses.

Roman Potyka, Underwriting Director at Hiscox Germany, pointed out that many entrepreneurs mistakenly believe their insurance policies offer adequate protection when in reality, many aren’t fully informed about their actual coverage. He emphasized the critical need for insurance providers and brokers to educate small businesses on risk management and proper insurance understanding.

Furthermore, 45% of entrepreneurs incorrectly think insurance can wait until their business is more profitable, potentially exposing them to heightened risk during vulnerable early stages. With cyber threats growing more sophisticated, this misjudgment could prove costly.

As ransomware attacks grow both in size and frequency, the dual challenge emerges: companies are becoming more resilient to ransom demands, yet the smaller firms remain ill-prepared in terms of cyber insurance knowledge and coverage. The introduction of new solutions like Beazley's 'Quantum' product and enhanced educational efforts for small businesses are critical steps in mitigating these evolving cyber risks.