The cyber threat landscape is continuously shifting and evolving. Ransomware attacks are making the news with increased regularity. With this considered the cyber insurance market has seen great change, with increasing premiums and reduced coverage. Cyber insurers, looking to minimise their risk, are seeking to insure those with a clear understanding of their deployed cybersecurity controls and solutions. Controls such as MFA (multi factor authentication) and anti-ransomware are becoming a must-have
What is cyber insurance and what does it entail? Cyber insurance protects organisations from the financial and operational impacts of cybercrime. This means cyber insurance is vital for any organisation handling sensitive data or relying on computer systems to conduct business. Cyber insurance is not a protection from cybercrime and cyber threats, this comes from cyber security solutions, it is instead a protection from the financial impact of such attacks. First-party coverage usually encompasses cyber response, restoration, expense, and extortion and court attendance costs. Whereas third-party coverage usually addresses cyber, network security, and media liability. However, it is vital to ensure you understand both what your insurer requires from you and what your policy covers. Cyber security experts Sophos reported that only 64% of organisations surveyed had cyber insurance that covered Ransomware attacks.
Essentially it all comes down to building and knowing your cybersecurity solution. This is going to help you achieve three key benefits. Implementing a strong cybersecurity solution can help you:
1. Get insurance at a sensible cost. With insurers increasing premiums, reducing cover, and carefully vetting prospective customers against the risk of dynamic cyber threats, strong cybersecurity solutions will position you well.
2. Reduce the likelihood of making a claim. A strong cybersecurity solution minimises the risk and impact of an attack, lessening the chance you will have to make a substantial claim against your policy (which could raise future premiums!)
3. Minimise the impact and cost of an attack. With threats constantly evolving, organisations cannot 100% guarantee they will be able to prevent a cyber-attack. However, an effective cybers
ecurity solution can help minimise any impact. This reduces the scale of claim you might need to make with your cyber insurer. ‘Cyber Hygiene’ therefore is the emerging key topic for organisations to consider. Put simply these are the steps and practices organisations undertake regularly to ensure healthy and secure users, devices, networks, and data. But where do you start when trying to implement cyber hygiene and an appropriate cyber security solution? This is where a managed services partner (MSP) is invaluable. An MSP is equipped with the latest knowledge in security practices and policies, can offer clarification on uncertain topics such as what security is embedded within your Microsoft 365 plan, and can support your achievement of the standards required for affordable cyber insurance.
Cyber security and insurance can be complex and may seem overwhelming. But, it doesn’t have to be that way.