Top 8 Cyber Insurance Requirements

Common Cyber Insurance Requirements

Since many cyber insurance providers didn’t understand the risks and lost money on the policies in place during the pandemic, they are now more careful and have higher security requirements. The most common of these are explained below:

1. Strong Access Controls

Insurers can require businesses to enforce strong access controls to minimize the risk of unauthorized access to sensitive data and systems. These controls use authentication and authorization rules to regulate user access. Access control methodologies vary in complexity, with the three most common ones being: discretionary access control, role-based access control, and attribute-based access control.

• Discretionary Access Control (DAC): Allows the owner of a resource to specify who can access that resource. Each user is assigned a set of permissions that determine what actions they can perform on each resource. DAC is simple and easy to implement, but not generally suitable for large-scale systems with many users and resources.
• Role-Based Access Control (RBAC): Assigns users to roles, and then grants permissions to roles. A user’s access to a resource is determined by the roles that the user is assigned. RBAC is more flexible than DAC, as it allows permissions to be assigned to groups of users rather than individual users. However, it still requires manual management of user-role assignments.
• Attribute-Based Access Control (ABAC): Uses attributes to determine access. Attributes can be anything, such as the user’s job title, the resource’s classification level, or the time of day. ABAC is more fine-grained than DAC and RBAC, as it allows access decisions to be made based on a wide range of factors. However, it is more complex to implement and manage than DAC and RBAC.

2. Vulnerability Management and Assessments

Vulnerability management is the process of finding, classifying, and fixing weaknesses in your network and software. It’s an ongoing process that’s part of your overall security strategy. Vulnerability scans help identify flaws before attackers exploit them. This also includes conducting regular external scans to find weaknesses cybercriminals could use to get in. Many cyber insurers require companies to have a working vulnerability management plan to qualify for coverage. Insurers may also mandate businesses to conduct regular vulnerability assessments to spot weaknesses and take corrective action to protect data security. Authentication vulnerabilities are a major cause of data breaches, often caused by poor credentials or coding errors.

3. Incident Response Plan

Businesses are often required to have a tried and tested incident response plan (IRP) in place to respond to cyberattacks quickly and effectively. This plan will help to contain incidents as they happen and limit damage. Your IRP should include:

• Who to notify and how during an incident.
• What information to collect during the incident.
• A way of classifying each incident.
• Protocols for conducting a forensic analysis after an incident is resolved.

4. Security Awareness Training

Insurers frequently demand that businesses conduct regular cybersecurity training to guarantee that employees understand their role in safeguarding data and systems. Effective cybersecurity training should include topics like identifying phishing emails, creating strong passwords, using multi-factor authentication, practicing safe browsing habits, reporting suspicious activities, and staying updated on emerging cyber threats. To meet cyber insurance requirements, businesses may have to conduct mock phishing campaigns.

5. Multi-factor Authentication

To minimize unauthorized access, insurers may require corporations to use Multi-Factor Authentication (MFA) for remote access to their systems, given the rise in remote work and cloud computing, which have expanded the threat landscape. MFA offers layered protection by requiring two forms of verification: a password and a physical token or biometric marker, making it harder for hackers to gain access.

6. Encryption

Cyber insurers are increasingly requiring companies to encrypt sensitive data as a condition of coverage. This is because encryption is one of the most effective ways to protect data from unauthorized access as it scrambles data so that it can only be decrypted with a key. This makes it much more difficult for attackers to steal or misuse data, even if they are able to access it.

7. Separate Backups

Solely relying on a single data backup is insufficient for comprehensive cyberattack protection. To ensure complete security, maintain separate backups independent of your primary environment. This segregation guarantees that one compromised backup does not jeopardize the integrity of the others. Additionally, storing backups in diverse locations provides further security, ensuring data accessibility even if one site encounters an attack. The practice of creating separate backups is often necessary for cyber insurance eligibility.

8.Endpoint Detection and Response

Endpoint Detection & Response (EDR) solutions are increasingly required by cyber insurers as a way to mitigate cyber risks and protect sensitive data. EDR solutions provide real-time visibility into endpoint activity. They can prevent or minimize the impact of cyberattacks, such as malware infections, phishing attempts, and ransomware attacks. Additionally, EDR solutions can help businesses comply with regulatory requirements and industry standards, which can lead to lower insurance premiums.

How Lepide Can Help Reduce Cyber Insurance Premiums

By providing real-time monitoring and analysis of user behavior, the Lepide Data Security Platform enables companies to detect and prevent unauthorized access, data breaches, and other security threats promptly. This proactive approach to cybersecurity demonstrates to insurance providers that your company is taking stringent measures to safeguard its data and assets. For example, Lepide’s solution is able to generate detailed reports at the click of a button, which can be sent to the relevant insurers as evidence of their commitment to cybersecurity.

If you’d like to see how the Lepide Data Security Platform can help you meet cyber insurance requirements, schedule a demo with one of our engineers or start your free trial today.