The relationship between an insurance provider and the insured is often described as adversarial: one party reluctantly pays a premium, while the other is reluctant to pay out if possible. But cyber insurance doesn’t have to be this way.
The increasingly volatile threat landscape means cyber insurance is fast becoming a critical part of risk management. Yet there are often strict requirements when it comes to cyber insurance, including specifications around the integrity of backups—which is unsurprising, given that 57% of successful ransomware attacks also compromise backups. To best position a business for solid coverage at a competitive rate, they should consider their investment in cybersecurity and disaster recovery solutions.
Building strong relationships with cyber insurers enables MSPs to tailor their services to meet insurance requirements, positioning themselves as trusted advisors in cyber risk management. This collaboration not only helps customers qualify for coverage and get competitive premiums but also strengthens their overall security posture through insurer-aligned best practices.
Insurers can be your best salesperson
Cyber insurance services is on an upward trajectory and is one of the fastest growing areas in the global insurance industry. In fact, it is estimated that premiums are expected to exceed $20 billion this year. With cyberthreats on the rise, it’s clear that cyber insurance is quickly becoming a business imperative.
For MSPs, this is a great opportunity to start engaging with insurance providers to better understand the specific requirements for obtaining and maintaining coverage. Through collaboration, MSPs can gain insights into the specific types of preventative measures and recovery capabilities that insurers deem essential to mitigate the financial and reputational risks associated with breaches. By understanding insurance providers’ checklists and requirements, MSPs can proactively tailor their service offerings to align with these demands.
And it’s a win for businesses too, who benefit from MSPs expertise in implementing and managing the security controls that insurers require. Engaging with insurers will give MSPs the knowledge to better understand their risk exposure and the measures they need to implement to best guard against incidents and ensure effective recovery. Furthermore, businesses can rest assured that they will have the necessary insurance in place if the worst case scenario does ever happen. There appears to be a growing interest in immutable backups, for example, as a condition for cyber insurance, where MSPs can guide customers on the necessary technologies and strategies based on insurer requirements. Then there is also the added benefit of being potentially more cost effective. As insurance companies gain a better understanding of the technology, they can provide more accurate quotes, which could lead to lower insurance premiums.
Supporting cyber insurers
Although it’s one of the fastest growing categories, cyber insurance is still relatively new. As a service, cyber insurance has been around just 28 years (whereas the first recorded instance of life insurance was introduced in 1583). It is also a much smaller market too. This is where MSPs can step in as trusted intermediaries, providing insights into security controls, monitoring capabilities, and incident response plans for their clients. We can expect the cyber insurance industry to increasingly play a central role in incident response. Having established relationships with MSPs can streamline communication during critical moments.
Collaboration as a catalyst for cyber resilience
The merging of these perspectives creates a unified resilience strategy that blends prevention and recovery. For instance, understanding the most common causes and costs of cyber incidents—often revealed through insurance claims—can inform the preventative measures that MSPs implement for their clients. Simultaneously, MSPs’ expertise in data backup and disaster recovery (BDR) ensures that effective recovery mechanisms are in place.
The collaborative relationship between MSPs, their customers, and insurers can foster a more secure business environment. This shared knowledge:
- Empowers MSPs to offer more effective security services
- Enables customers to save money with accurate and reliable cyber insurance coverage
- Allows insurers to better assess and manage risk
Overall, this partnership can create a win-win situation for all involved, leading to a more secure and resilient digital ecosystem.
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