Cyber insurance and access management: How to protect your organization

Cyber insurance in transition

Cyber insurance is becoming increasingly important, but obtaining a policy is no longer just a formality. Today, every insurance provider has specific requirements for an organization’s IT security strategy.

Identity and access management (IAM) is often a significant priority. Organizations that lack proper access management measures risk facing higher premiums, coverage exclusions, or even denial of insurance. To avoid remaining vulnerable, taking action is crucial, and we are here to help.

What does cyber insurance cover?

Cyber insurance offers protection against the financial consequences of IT security incidents, including hacker attacks, data leaks, or the loss of sensitive information through phishing emails. Hackers frequently use email, in particular, to infiltrate systems with malware or steal sensitive data.

Typical benefits of cyber insurance include:

Costs for recovering lost or encrypted data
Immediate support and IT forensics following a hacker attack
Assumption of costs for notifying affected customers and authorities
Legal guidance in case of data protection violations
Compensation for business interruptions or damage to reputation

Why is cyber insurance so important?

The number of digital attacks is constantly increasing. Organizations of all sizes face escalating risks from hackers, insiders, and malware. A successful attack can lead to significant costs, including lost sales, legal penalties, and long-term damage to the organization's reputation.

Although cyber insurance does not provide protection against the attack itself, it significantly reduces the financial consequences and enables a swift response. However, there are prerequisites: organizations must implement basic security measures, particularly regarding access management.

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New requirements from insurers: focus on access security

In the past, general guidelines or rough security concepts were often enough to secure cyber insurance. Today, insurers require specific technical measures, especially in access management. These include:

Multi-factor authentication (MFA): Many insurers require mandatory multi-factor authentication; otherwise, no policy will be issued.
Sufficient IAM processes: Anyone who cannot demonstrate that access to sensitive data is strictly controlled through Identity and Access Management risks losing their insurance coverage in the event of a claim.
FIDO2 / Passwordless authentication: Reducing password risks through secure authentication methods.
Single Sign-On (SSO): Provides secure, convenient access to multiple systems with a single login.
Zero trust is becoming the new standard: organizations must demonstrate that they do not place blind trust in internal or external entities.

Of course, these measures also protect your organization. They ensure that you are better prepared for a wide range of risks. You can avoid data breaches, data leaks, and hacks, all problems that can not only cause immense financial damage but, more importantly, undermine trust in your organization.

Send a clear signal to your customers that you take risks and issues seriously, as they are entrusting you with data and information whose security and confidentiality should be your top priority.

Only by making targeted investments in access management can organizations ensure their cyber insurability while enhancing their overall security posture. Organizations that fail to meet these standards may face significant challenges with their insurance coverage. 

How Pointsharp makes companies "insurable"

Pointsharp supports companies in efficiently meeting the requirements of insurers:

Multi-factor authentication (MFA): Easy and user-friendly solutions to protect identities. .
Single Sign-On (SSO): Comprehensive access to all systems with just one login.
Identity & Access Management (IAM): Centralized control and monitoring of all access processes.
FIDO2 / Passwordless authentication: State-of-the-art security standards and authentication methods that eliminate password vulnerabilities.
Zero Trust Architecture: Continuous checking and validation of all accesses.

With Pointsharp, organizations not only lay the groundwork for effective cyber insurance but also sustainably improve their overall IT security architecture.

Next steps

Cyber insurance is a key element of modern IT security strategies, but only for organizations that fulfill the new requirements. Access management plays an essential role in this. Pointsharp provides solutions that make your organization both "insurable" and elevate your cyber security maturity to a new level.