Cyber insurance is becoming more difficult and expensive to secure for organisations that cannot demonstrate strong cybersecurity practices. In response to rising cyberattacks and increasingly sophisticated threats, insurers are carrying out far more detailed assessments before offering cover.
Cyber insurance underwriting is increasingly focused on operational resilience and cybersecurity maturity. And organisations that fail to meet minimum security expectations potentially facing higher premiums, policy exclusions or even refusal of cover.
Many of the controls insurers are looking for are the same practical measures recommended by cybersecurity frameworks and government guidance. In that sense, cyber insurance is also a reflection of an organisation’s overall cyber resilience.
1. Implement MFA across your business
Multi-factor authentication (MFA) is one of the clearest baseline requirements for cyber insurers. Compromised credentials are still one of the most common causes of cyber incidents and MFA significantly reduces the likelihood of attackers gaining access through stolen passwords alone.
Because of this, MFA is increasingly viewed as a non-negotiable control by insurers. A business still relying solely on usernames and passwords is likely to be viewed as carrying significantly greater risk.
2. Make sure your backups are tested
Insurers are paying much closer attention to backup and recovery processes and it is not enough to simply say backups exist. Organisations may be expected to demonstrate that backups are secure, regularly tested and capable of supporting fast recovery after an attack.
This is particularly important in ransomware scenarios, where businesses need to restore systems quickly to minimise operational disruption. Backups that cannot be recovered effectively may provide little real protection during a crisis.
This means insurers increasingly look for evidence that organisations can continue operating even after a significant incident.
3. Prioritise vulnerability and patch management
Attackers continue to exploit known vulnerabilities in unpatched systems, making patch management an important focus during cyber insurance assessments.
Insurers want reassurance that organisations have visibility across their systems, understand where vulnerabilities exist and can respond quickly to critical security updates. Businesses operating unsupported infrastructure or delaying patches may be viewed as significantly higher risk.
Strong vulnerability management processes help demonstrate that an organisation is actively reducing its exposure rather than simply reacting after incidents occur.
4. Strengthen employee cyber awareness
Technology alone is not enough to prevent cyber incidents. Human error is one of the most common factors in successful attacks, particularly phishing and social engineering campaigns.
Because of this, insurers may look for evidence that organisations are investing in employee cybersecurity awareness and building a stronger security culture across the business.
Regular training, phishing simulations and clear reporting processes all help reduce the likelihood of employees inadvertently creating risk. They also demonstrate that cybersecurity is treated as a shared organisational responsibility rather than solely an IT issue.
5. Develop and test an incident response plan
More insurers are asking organisations how they would respond if a serious cyber incident occurred tomorrow.
Having a documented incident response plan is essential but insurers may also want to know whether those plans have been tested in practice. Organisations that regularly carry out tabletop exercises and response simulations are generally better prepared to contain incidents and recover quickly.
An effective response plan should cover technical response, communications, decision-making and recovery processes. Businesses that demonstrate operational readiness are often viewed more favourably because they are likely to reduce the overall impact and cost of an incident.