Navigating cyber insurance challenges with advanced identity security

Cyber insurance has become a critical component of any comprehensive risk management program. It plays a vital role in ensuring resilience and speeding up recovery after a breach. While it’s quickly becoming a standard practice, the landscape is shifting, and maintaining insurability is now becoming more complex as risk factors continually evolve.

As cyber incidents disrupt businesses globally, insurers are scrutinizing security measures more closely, requiring organizations to provide extensive evidence to maintain or increase coverage. This challenge is heightened in large, hybrid enterprises with constantly shifting risk profiles, making real-time data collection labor-intensive and time-consuming.

As Gartner notes, insurers often require organizations to deploy a PAM tool, along with MFA, for administrative access to mitigate the risk of breaches and malware events. Clients should expect cybersecurity insurers to continue to scrutinize how privileged access is managed, in return for an insurance policy or lower premiums.

A significant trend underscores the urgency: 77% of companies with cyber insurance have previously filed a claim, and 62% of those companies filed a claim in just the past 12 months, highlighting the increasing frequency of cyber incidents. This statistic alone signals a rising tide of threats, emphasizing why insurers are heightening their demands for robust security measures.

In our latest report, Delinea surveyed 300 decision-makers to understand how organizations tackle these obstacles and secure the cyber insurance they need. In particular, we explored the role of emerging technologies like Artificial Intelligence (AI) in streamlining processes, boosting efficiency, and cutting costs. Our findings shed light on top trends impacting the landscape of cyber insurance:

1. Gaps in Identity Security are the Leading Cause of Cyber Incidents Resulting in Insurance Claims

The study revealed that gaps in identity security remain the most common cause of cyber incidents that lead to insurance claims. In fact, identity and privilege compromises account for a staggering 47% of attacks. This statistic underscores a critical truth: organizations must fortify their identity security measures if they want to mitigate risks and secure their insurance.

2. Insurers Demand Proof of Identity Security

Increasingly, insurers are making identity security a prerequisite for coverage. Over 40% of insurance companies now require evidence of least-privilege access controls and authorization policies before they issue a policy. This is a clear message to businesses: robust identity security isn't optional—it’s mandatory.

3. AI is Providing an Edge for Policyholders

Despite the rising costs of cyber insurance, AI is offering a competitive advantage to forward-thinking organizations. Half of U.S. companies are already using AI-supported threat detection and monitoring technologies to reduce their premiums. By leveraging AI, these organizations are not only enhancing their security posture but also driving down the costs associated with maintaining comprehensive cyber insurance.

This is where Delinea comes in. At Delinea, we are committed to helping organizations secure their most critical assets through pragmatic, scalable, and AI-driven identity security solutions. Our platform makes it easier to implement least-privilege access controls, monitor sensitive accounts, and respond dynamically to threats—addressing the very concerns that insurers are prioritizing.

As we move forward, it’s clear that organizations need to adopt a forward-looking approach to both security and cyber insurance. Emerging technologies like AI are playing an increasingly important role in helping businesses stay ahead of threats while keeping costs under control. But it all starts with identity security.

If you’re preparing for your next cyber insurance assessment or simply looking to strengthen your security posture, our report provides actionable insights that can help you benchmark your identity security practices and refine your cyber insurance strategy.

Read the full 2024 State of Cyber Insurance Research Report to explore innovative ways to reduce your effort and costs, and ensure you’re fully prepared for the challenges ahead.