Check your Cybersecurity Stance: Mitigate your Risk and Rising Insurance Costs

We’ve received a growing amount of inquiries from prospects and clients related to this question: “Is there anything you can do to help lower our cybersecurity Insurance premiums?” During insurance renewal season, many have been surprised by the magnitude of premium increases. This was predicted to occur, but no one knew for sure how large the increases would be.

 

A Shift in the Cybersecurity Equation

As a network and IT infrastructure managed services provider, we’re often in cybersecurity risk management conversations in which executives are choosing to pursue a larger investment in insurance and less in technology as their risk mitigation strategy. The substantial increases in premiums appear to be altering that equation. In order to reduce premiums, and in some cases provide coverage at all, insurance companies are requiring several cybersecurity-related enhancements, including vulnerability assessments, cybersecurity awareness training, updated spam filtering and anti-virus, multifactor authentication, and  xDR/EDR/MDR.

Insurers are Demanding Stronger Cybersecurity Measures

A deeper look into the cybersecurity insurance marketplace provides more context as to what’s driving this activity.In the Harvard Business Review article, “Cybersecurity Insurance Has a Big Problem”, Tom Johansmeyer shares a thorough analysis of the emerging challenges. He summarizes that, “… while more attacks could stimulate demand, they also create a supply problem.

The implication is that by recommending the enhancement of their customers’ cybersecurity environments, the insurance industry is adding their voice to the IT professionals who’ve been encouraging these same methods. These trends appear to lead inevitably back to the need for greater investment in the technology side of the risk management equation – whether it be to adjust for availability or affordability of the insurance. The good news is that there’s been a healthy maturation of capabilities in the IT industry over the last several years with products and services geared to address the rapidly growing cybersecurity threat landscape.
Cutting Through the Complexity of Cybersecurity Offering
For those not already familiar with the cybersecurity provider marketplace, a small amount of exploration will likely lead to a high level of disorientation about the multitude of products and providers available. Like many things related to the IT industry, there’s a blend of standalone services, standalone products, and mashups presented in as-a-service offerings. To cut through the hassle more quickly, reach out to one of your friendly neighborhood infrastructure services partners for greater insight into how to address this area of technology
As with all risk management decisions, there are many factors involved in arriving at the plan most appropriate for your business. Be sure to include these most recent developments in the insurance industry as part of your analysis. Be aware, be planful, and be cybersecurity incident-free in 2021!