Adrian Johnson
TLDR
- Collaboration between businesses and InsurSec providers can enhance cybersecurity
- 72% of businesses consider cyber insurance critical or important
To enhance cybersecurity, businesses should collaborate more closely with their insurance providers—particularly those that operate as hybrid InsurSec (insurance and cybersecurity) firms—to develop more effective risk reduction strategies, according to a study by global tech analyst firm Omdia. The study revealed that cyber insurance is now seen as a best practice by many businesses, with 72% of respondents considering it “critical” or “important” to their organisation. Additionally, 43% of respondents reported that cyber insurance requirements are a significant driver of their cybersecurity spending.
Andrew Braunberg, an analyst at Omdia, stated, “We believe an important finding from this report is that there’s a large number of organisations that should consider partnering with a cyber insurance provider to help drive cybersecurity maturity.” He added, “There can be upside for enterprises in aligning proactive cybersecurity spending with cyber insurance requirements, with an even more powerful emerging option to partner with an InsurSec provider to optimise risk reduction and technology performance. These relatively new entities combine cybersecurity products and services with insurance offerings to offer a wider scope of prevention and protection.”
Businesses of all sizes are increasingly prioritising proactive security solutions that help identify and mitigate potential threats. Over the past year, more than 70% of respondents increased their spending on such solutions. However, despite using cyber insurance to inform security decisions, only 13% of respondents reported working “proactively” with their cyber insurance provider to reduce cyber risk. Nonetheless, 33% said they take preventive measures with support from their cyber insurer.
Proactive collaboration is even lower in critical infrastructure sectors, where cyber risks could have broader societal impacts. For example, only 4% of manufacturing companies, 7% of energy, utility, and transportation companies, and 8% of healthcare companies reported proactive engagement with their cyber insurance providers.
Thom Dekens, Chief Business Officer at At-Bay and GM of At-Bay Security, commented, “Cyber insurance has emerged as a critical pillar to building a proactive cybersecurity strategy as it enables companies to complete their risk mitigation. Additionally, insurance providers with significant in-house cybersecurity expertise can provide huge business value to their customers, closely partnering with them to make informed decisions about their technology strategies and also improve their risk outcomes throughout the policy year.”
