Introduction

Cyber insurance is no longer a niche offering—it’s a strategic necessity. As cyber threats grow in scale and complexity, IT professionals must understand how insurance fits into a broader risk management program. This article explores the evolving cyber insurance market, the challenges of obtaining coverage, and the technical controls that insurers expect.

1. The Maturing Cyber Insurance Market

Cyber risk is now recognised as a material business risk, impacting everything from job security to revenue continuity. Attacks can disrupt critical functions like sales and order fulfillment, with costs extending beyond ransom payments to full operational recovery.

• ACAT Risk Model: Avoid, Control, Accept, Transfer.
• Traditional Insurance Gaps: Most general liability, property, and business interruption policies exclude cyber coverage.
• Policy Evolution: Insurers now demand stronger IT controls and clearer terms, with exclusions for foreign attacks and limited payouts.

2. Why Cyber Insurance Is Hard to Get

Reason 1: Cyber Is a Dynamic Risk

• Threats evolve rapidly.
• MFA, password managers and updated security tools are now baseline requirements.

Reason 2: Technical Restrictions

• Many organisations lack the expertise or willingness to implement required controls.
• Premiums can be prohibitively expensive.

Reason 3: Immature Market

• Policies are non-standardised and difficult to compare.
• Quotes depend on technical disclosures (e.g., phishing test results, privileged account inventories).

Reason 4: Demand Outpaces Supply

• Insurers are selective, favouring companies with robust controls that reduce claim risk.

3. How to Qualify for Cyber Insurance

Getting insured requires preparation and transparency. Organisations must:

• Conduct a gap analysis.
• Build a roadmap for control implementation.
• Respond clearly to insurer questionnaires.

Core IT Controls (Required for All)

• MFA for Office 365, RDP, backups and privileged access.
• Email filtering (SPF, DKIM, DMARC).
• Backup strategy (3-2-1).
• Endpoint protection and regular updates.
• Removal of end-of-life systems.
• Hardened RDP access via VPN and MFA.
• Regular control testing.

Additional Controls (For Large Enterprises)

• Zero Trust Architecture: Segmentation, least privilege and admin restrictions.
• IDS, PAM, SIEM/SOC: Advanced monitoring and access management.

4. Completing the Insurance Application

• Expect detailed technical questions—up to 60 in some cases.
• Provide minimum viable answers backed by truth.
• Clarify definitions with insurers.
• Be transparent about timelines for new control implementation.

External Vulnerability Scans

• Automated scans may produce false positives.
• Review results carefully before submission.

5. Special Topics and Future Trends

Insurance Industry as a Cybersecurity Leader

• Insurers increasingly reference the CIS Top 20 Controls.
• Data-driven standards from customers will shape future policy requirements.

Self-Insurance Considerations

• Understand terms like coverage cost, annual premium and deductible.
• Implement controls proactively if coverage is denied.

The Road Ahead

• MSSPs may partner with insurers to support policyholders.
• Governments may offer cyber insurance programs.
• Cyber insurance will remain a fixture in enterprise risk strategy.

Conclusion and Call to Action

Cyber insurance is evolving—and qualifying is tougher than ever. IT professionals must align their tech stack with insurer expectations to secure the best coverage and rates.

Take action today: Review your controls, conduct a gap analysis and prepare your organization for the next insurance cycle. The right strategy could mean the difference between resilience and ruin. For more on cybersecurity insurance. Contact Lockdown market now for how we can help you can get the best insurance at reduced premiums.