Half of organizations with cyber insurance implemented security measures to qualify, reduce cost
FRISCO, Texas, September 26, 2023 – Netwrix, a cybersecurity vendor that makes data security easy, surveyed more than 1,600 IT and security professionals worldwide to reveal how their organizations reduce the financial impact of a data breach via a cyber insurance policy.
According to the survey, 44% of organizations are insured and 15% plan to purchase a policy within the next 12 months. Before being offered a policy, organizations typically need to go through a security audit by the prospective insurer.
“The insurer’s audit will highlight security gaps in the IT ecosystem and provide recommendations on how to overcome them. In some cases, implementing additional security controls is mandatory to even qualify for a policy. In addition, some organizations choose to invest in more security measures because it reduces the cost of the insurance policy,” says Dirk Schrader, VP of Security Research at Netwrix.
We asked respondents what requirements they had to meet in order to qualify for a policy. The most requested measure was multifactor authentication (MFA), named by 63%, followed by patch management (55%) and regular security training for business users (47%). In addition, 38% said they had to meet requirements for identity and access management (IAM), while 36% revealed they had to implement privileged access management (PAM) controls. Indeed, according to Gartner, “Insurers often require organizations to deploy a PAM tool, along with MFA for administrative access, to mitigate the risk of breaches and malware events.”(1)
“When addressing the requirements or recommendations from an insurer, it is vital to assess the dependencies between the requested controls. For example, in order to require MFA for access to particular types of data, it is necessary to know where sensitive and regulated data resides, as well as to have control over user and administrative privileges,” says Ilia Sotnikov, Security Strategist at Netwrix.
To learn more about security trends, check out the complete 2023 Hybrid Security Trends Report.
(1)Gartner, Magic Quadrant for Privileged Access Management, Felix Gaehtgens, James Hoover, Michael Kelley, Brian Guthrie, Abhyuday Data, 5 September 2023.
