Security
CYBER INSURANCE A KEY DRIVER OF SECURITY SALES
Businesses are under pressure to strengthen cybersecurity as insurance premiums rise and compliance demands grow. For MSPs, this presents an opportunity to step up as strategic advisors, says Stefan Voss, VP of Product Management at N-able, helping clients navigate risk and remain insurable in a shifting threat landscape.
C
yber insurance is the (now not-so-new) industry hot topic for businesses keen to protect themselves from the consequences of a cyberattack. Security provider KnowBe4 recently revealed
that the average cost of a data breach has risen to USD4.88 million in 2024, prompting insurers to demand that businesses take more measures to limit the risk of a violation and push premiums upward. Tis new reality is forcing businesses that want to stay insured to
rethink their approach to security, not just to keep out intruders, but to remain compliant with rules that will keep their insurance valid if anything goes wrong. For MSPs, this shiſt presents a golden opportunity to evolve their
customer relationship from technical service providers to trusted cybersecurity advisors. By understanding the demands of cyber insurance providers and what needs to be done to meet these demands, MSPs can position themselves at the heart of their customers’ risk management strategies.
The maturing cyber insurance landscape Although it’s one of the fastest-growing sectors in the global insurance industry, cyber insurance is still in its relative infancy. Tis means it is still grappling with what exactly should be covered and under what terms. Generally, cyber insurance policies cover: • Data breaches, including the exposure or theſt of sensitive information such as personal data, payment card details, or intellectual property. Tis may include the cost of a forensic investigation to discover exactly what went wrong.
• Ransomware attacks, where malicious actors encrypt business-critical systems or data and demand payment for restoration.
• Business interruption due to cyber incidents, financial losses from 26 | July/August 2025
downtime caused by cyberattacks, including loss of revenue and operational delays.
However, exclusions remain a key point of contention. Many policies will not cover negligent cybersecurity practices, such as failing to patch known vulnerabilities, a lack of suitable backups, or systems lacking multifactor authentication (MFA) protection. What’s clear is that requirements for coverage are becoming more demanding. Insurers are now pushing for stricter criteria, such as: • Immutable backups, backup systems that cannot be altered or deleted, ensuring data integrity in the face of ransomware. • Endpoint Detection and Response (EDR) tools, advanced security solutions that detect, investigate, and respond to suspicious activity on endpoint devices.
• Multi-factor authentication (MFA), requiring users to verify identity using multiple methods (e.g., password and a code or biometric), reducing unauthorised access.
• Comprehensive vulnerability identification and patching. • Formalised incident response plans, comprehensive playbooks outlining how organisations detect, contain, and recover from cyber incidents, demonstrating preparedness.
Companies unable to demonstrate a robust security strategy will either face prohibitively high premiums or outright rejection from underwriters. Currently, it’s unlikely that many businesses will have all of these in place unless they have been highly focused on improving their cybersecurity posture. Many will have unpatched servers, variable use of MFA, too many superusers who don’t need such high-level access, and more. Getting from where they are now to a place where they are insurable will require a significant amount of effort and assistance.
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