Cyber insurance provides financial protection against the potential losses that can result from a data breach or cyberattack. This coverage typically includes expenses related to data recovery, legal fees, public relations and potential regulatory fines. Additionally, cyber insurance offers crisis management support.
Organizations of all sizes are embracing proactive cybersecurity solutions, and a key driver of cybersecurity spend decisions for many businesses is, indeed, cyber insurance. In fact, according to a recent survey released by At-Bay, cyber insurance emerged as a best practice for many businesses, with 72% of all respondents viewing it as “critical” or “important” to their organization.
Cyber insurance requirements are also strongly influencing how companies allocate their cybersecurity budgets. Nearly half of all businesses say these requirements are a major factor in their security spending decisions. This trend is even more pronounced among larger organizations, where over half report that cyber insurance is a key driver of their cybersecurity investments.
However, according to the report, only 13% of all respondents admit to working “proactively” with their cyber insurance provider to reduce cyber risk. There is a big opportunity for businesses to partner more closely with their insurance provider to unlock more effective risk reduction strategies. This is especially true if the provider is a hybrid InsurSec provider. These providers offer a unique value proposition by providing financial protection and proactive risk management services.
Unlike traditional insurers, InsurSec providers often have in-house cybersecurity teams that can assess a client's risk profile, identify vulnerabilities and recommend remediation measures. This helps businesses improve their overall security posture and reduce their likelihood of experiencing a cyber incident.
InsurSec providers also play a key role in incident response. In the event of a breach, they provide immediate assistance with containment, forensic investigation and notification of affected parties. This helps minimize the damage caused by the incident and expedite the recovery process.
“Cyber insurance has emerged as a critical pillar to building a proactive cybersecurity strategy as it enables companies to complete their risk mitigation,” said Thom Dekens, Chief Business Officer at At-Bay and General Manager of At-Bay Security. “Additionally, insurance providers with significant in-house cybersecurity expertise can provide huge business value to their customers, closely partnering with them to make informed decisions about their technology strategies and also improve their risk outcomes throughout the policy year.”
By partnering with an InsurSec provider, businesses benefit from a more proactive approach to cybersecurity. Taking this approach reduces their exposure to risk and protects their valuable assets.
Edited by
Alex Passett
