The global cyber threat environment continues to pose a challenge for businesses, with ransomware attacks and data breaches becoming more frequent and severe. Remote work arrangements have grown in the last two years, creating the perfect environment for cybercriminals to exploit weaknesses and attack organisations across all industries.
To offset the costs of data breaches and cyber-attacks, many companies have turned to cyber insurance. Unfortunately, as a result of the increase in insurance claims over the last few years due to cyber incidents, premiums have increased substantially. To reduce risk insurance companies have also implemented stricter requirements and exclusions, leading to many businesses needing to assess their risk management strategies as well.
Those companies that proactively approach cybersecurity by implementing ongoing risk assessment and management alongside robust cybersecurity protocols and measures will be able to reduce their cyber insurance premiums while maintaining the most appropriate coverage.
Why are cyber insurance premiums rising?
There has been a big increase in cybercrime since the beginning of the COVID-19 epidemic. With more people online as a result of remote working, ransomware and security breaches have been more frequent and damaging.
As the risks for policyholders have increased, insurance providers have had to rethink their business models and select customers more carefully, which has resulted in rising premiums. Globally, cyber insurance prices have increased markedly and the UK cyber insurance market is expanding at a steady rate to meet demand.
It’s never been more important to protect your business from financial losses and business interruptions. While cyber insurance cover is essential, there are steps you can take to lower the cost. By investing in risk mitigation, advanced network security, and advanced security solutions, you can potentially lower the cost of your cyber liability insurance policy.
Tips to reduce your cyber insurance premium
Make sure that your business’s data is always secure and that your cyber insurance premiums are reduced by implementing the following security practices and solutions:
- Multi-factor authentication: Most Microsoft enterprise accounts are hacked because multi-factor authentication (MFA) is not activated. MFA adds extra protection to accounts by requiring multiple verifications to verify your identity. Begin with email, and then use MFA on applications where possible. Microsoft states9% of attacks can be prevented with this one simple action.
- Data backup and recovery: Having a full data backup can make the difference between losing all data and recovering business operations after a ransomware attack. A custom data backup and recovery strategy should be developed for the company.
- Secure remote access: As hybrid and remote work models are so deeply embedded in business today, employees are no longer limited to controlled working environments. While this gives them remote access to company resources, it also increases the risk of data breaches. Follow security protocols and procedures to ensure secure remote access.
- Regularly patch/update: All software and applications are updated and patched immediately if required, to prevent cybercriminals from exploiting vulnerabilities to access your network or systems.
- Password manager: The problem with having to remember multiple passwords is that people tend to use the same password on multiple websites. Password managers create strong passwords that are not vulnerable to hacking. Poor password security is responsible for 80% of data breaches, and 90% of passwords are hackable.
- Ongoing risk assessment and management: It is imperative that cyber insurance firms see your business undertaking ongoing risk analysis and management, as the cyber threat landscape is constantly changing and what is safe today may not be so tomorrow.
- Data encryption: An encrypted file is one in which the data is scrambled, making it inaccessible to everyone except the intended recipient. If your company suffers a data breach as a result of a lost device and your data is not encrypted, you may be subject to severe penalties and fines.
- Cybersecurity awareness training: 60% of claims are a result of human error. Everyone can help avoid this by fostering a culture of cyber risk awareness.
- Complying with security frameworks: Some insurance providers provide discounts or lowered premiums if your company has adopted a well-known security framework such as NIST or internationally recognised standards such as the ISO series. A framework typically covers fundamental security measures, which indicates that you are adhering to excellent security methods and meeting sufficient standards.
- Oversight by a managed IT services provider: Security providers who continuously monitor your IT infrastructure can detect and prevent threats from escalating and mitigate the damage done.
Reduce your business cyber liability risk profile with security experts
Leveraging the expertise of managed security services can help organisations significantly reduce the risk of serious business and financial consequences from a successful cyber-attack while demonstrating to their cyber-security insurance that their overall security posture is hardened to withstand cyber-attacks.
With INTELLIWORX, you can secure your enterprise in a manner that best matches your requirements, from around-the-clock monitoring to remote security and customised security hardware. Safeguard your information and systems and decrease your cybersecurity risk profile to reduce your insurance premiums with the expert security team at INTELLIWORX.