Happy Hump Day, readers.
Earlier this summer, my colleague Greg Tavarez wrote a great article on cyber insurance and its benefits for today’s MSPs. (Read it in full here.)
The gist of what Tavarez laid out is simple: With cyber insurance comes financial protection against losses that can result from data breaches and other malicious ploys perpetuated by bad actors. The right coverage against such threats “typically includes expenses related to data recovery, legal fees, public relations and potential regulatory fines, and can also include crisis management support,” Tavarez wrote.
Proactive cyber insurance — not terribly unlike automotive or homeowners insurance, for example — should be embraced by organizations of all sizes. Though budgets will differ (in terms of respective orgs’ drivers for pursuing the right insurance for their needs) and partnering with the right cyber insurance providers can take time, it’s no less clear that protecting business assets and expediting recovery processes are a must.
With all this in mind, I decided to follow up Tavarez’s story with new cyber insurance-focused data provided by Delinea in its recently released report.
Based on its survey of hundreds of enterprise decision-making teams, Delinea highlighted the following findings in the report:
- High Frequency of Claims: Cyber insurance claims remain quite high, with 62% of respondents filing a claim in the last 12 months. Notably, over 27% of these respondents have filed multiple claims, highlighting the ongoing and intensifying nature of cyber threats. (But also, on the other side of that coin, highlighting organizations' active steps being taken to pursue the insurance that’s right for them. A give and take, as the saying goes.)
- Identity Security Under Scrutiny: Another significant finding from the report is the still-critical role of “identity security in cyber incidents.” 47% of attacks leading to insurance claims have been linked to identity and privilege compromises. So, Delinea emphasizes the need for robust identity security measures as a fundamental component of any organization's cybersecurity strategy.
- Insurance Requirements for Identity Security: The ideas shared above don’t come without initial requirements for MSPs, of course. 41% of cyber insurance companies require proof of least privilege access controls or authorization before granting a policy, and a whopping 95% of respondents reported the necessity of investing in identity security solutions before obtaining cyber insurance. These findings underscore the growing demand for stringent identity security protocols to secure comprehensive coverage. (Effort from both sides so everyone benefits, in other words.)
- AI Adoption for Lower Premiums: Lastly, the report indicated that “half of U.S. companies are now leveraging AI-supported threat detection and monitoring solutions.” And while AI-powered tools still require thoroughly fleshed-out guardrails and oversight, advanced technologies are nonetheless proving instrumental in reducing cyber insurance premiums, offering strategic advantages to policyholders in an environment where overall insurance costs are on the rise.
“Insurance companies increasingly require proof of robust identity controls, with 41% demanding evidence of least privilege access. Given that identity and privilege compromises account for 47% of attacks leading to insurance claims, this is hardly surprising,” said Rick Hanson, President of Delinea. "Investing in identity security solutions has become essential for securing cyber insurance. At Delinea, we address these demands with AI-driven solutions that enhance security, deploy quickly, and require 90% fewer resources than our competitors. Our platform ensures organizations meet stringent insurance requirements while significantly bolstering their overall risk management.”
As organizations continue to invest in today’s ever-complex enterprise environments, cyber insurance successes will increasingly rely on advanced technologies like thorough identity solutions to keep pace with the volatile threat landscape.
Overall, Delinea’s Cyber Insurance Report highlights growing challenges companies face in maintaining insurability amidst rapidly evolving risk factors.
Learn more about security and proactive resources that businesses can tap into at MSP Expo, taking place in Fort Lauderdale, Florida from February 11-13, 2025. Part of the #TECHSUPERSHOW experience, MSP Expo is the premier event for MSPs, offering a three-day experience combining conference education, networking opportunities, an exhibit hall full of the latest technologies and solutions to help MSPs build their operations stronger.
Edited by
Alex Passett
