Insurance can be one of the most unloved, but most purchased items in business when you need to use it. In the past few decades, it was essential to fight against fire, theft, and other visible threats to the business, however as cyber attacks increase, the need for cyber insurance is increasing. always high.
However, qualifying for cyber insurance is easier said than done. Businesses not only have to deal with the rising cost of payments, but they also face a long list of challenges that see their security systems and applications need to be funded.
Understanding the importance of cyber insurance
According to IBM, the average cost of a data breach was $4.24 million in 2021, the highest in history. This number is unlikely to drop anytime soon, as reports predict that the price may rise $1 trillion in 2022. As financial concerns surrounding cyber attacks continue to grow, businesses are increasingly focusing on financial protection from cyber threats. This is why the demand for cyber insurance has increased in recent years because it was sometimes an easy decision.
Cyber insurance is a business imperative, with every company with a digital presence, no matter how small, needing protection from the ever-increasing threat of cyber-attacks. In fact, cyber insurance is expected to be a $ 20 billion companies in the next three years.
Due to the frequent occurrence of cyber attacks, the costs are also higher than before. According to the Global Insurance Market Indexin Q4 2021 alone, online insurance rates increased by 130 percent in the US and 92 percent in the UK.
The main barrier to closure, however, is a long list of legal challenges based on the assessment of current and existing business practices. Insurers cannot cover organizations until they meet a pre-agreed list of their cybersecurity and network security capabilities.
Therefore, companies need to demonstrate cyber insurance preparedness by following key security measures and best practices that not only increase their protection against emerging threats but also position them to receive premium insurance.
What are some of the essentials of cyber insurance?
Most cyber insurance providers make the right decisions based on an organization’s security capabilities and cyber security preparedness. If organizations fail to meet the insurance requirements, this results in higher costs or complete rejection by the provider. However, denial has become a common choice for insurers.
Although there is no universally accepted standard for the cyber insurance industry, most insurance providers consider three main factors when evaluating an organization’s cyber security preparedness:
- Advanced network firewall
- Antivirus and anti-malware
- Find security controls.
Analyzing these factors helps insurers assess how well the company manages and mitigates risk, and how well it protects access to valuable online resources. They can then determine the company’s security situation and understand the level of risk they face from emerging security threats such as ransomware or data breaches.
Insurance requirements change rapidly with changes in risk factors, however, this should remain the basis of any requirement, as it defines the foundation of the company’s security.
In order to prepare their defenses to meet these demands, and receive financial protection from cyber insurance providers, organizations need to improve their cyber security capabilities. The best way to achieve this is to implement “privileged access management”.
Improving cyber security capabilities through access control
Lack of security measures and cyber hygiene are two of the main reasons companies refuse to take out security insurance. Companies often take a proactive approach to cybersecurity, meaning that solutions and strategies focus on mitigating threats once they are identified.
However, the most robust security architectures are those that can detect and mitigate threats before they breach the network gateway. This is where “Privileged Access Management”, or PAM, solutions come in 95 percent of all cyber threats they are aimed at end users. Attackers find it easier to use unauthorized credentials, weak network connections, and a lack of user knowledge, rather than directly targeting highly encrypted systems. This is why access control is a critical component of cybersecurity performance management.
Integrating PAM solutions allows an organization to implement password management, multi-factor authentication and management tools. This helps to constantly monitor the network activity of privileged accounts and alert you to any access-related risk that could lead to a breach.
PAM solutions provide an automated way to review and validate access requests. Such solutions perform an authentication function at each part of the network, which means that the identity of users, devices, and network protocols must be verified and verified at each part of the network in real time. Any errors or inconsistencies found in the access request will limit access and notify security teams, which reduces the risk of an attack before a breach occurs. For example, if a user without administrative rights tries to access a file or program, PAM solutions can immediately detect what has happened, define security groups, and stop the entire process until the problem is solved.
PAM solutions can also bind controls to specific devices and information fields, reducing the risk of remote attacks and information leakage. In addition, it ensures that each user has the necessary access to their services, eliminating the need for rare accounts on the Internet.
Overall, PAM is a flexible access control system. Such solutions not only allow organizations to gain visibility into their networks but also protect access to the Internet from internal and external threats. PAM provides guidance to help manage the process.
Integrating PAM solutions will help strengthen cyber defense capabilities and provide much-needed assurance to insurers. Cyber insurance policies will continue to evolve and mature as the digital threat landscape continues to evolve. Therefore, organizations need to insure that they can protect against the most frequent threats and breaches while dealing with complex threats.
Implementing a PAM solution strengthens an organization’s efforts to combat major threats and builds trust among insurers – creating a better way to receive financial protection for cyber insurance.
Joseph Carson is Chief Security Scientist at Messages.