Getting cyber insurance isn’t as simple as choosing a provider and signing a check — there are specific cybersecurity requirements your organization already needs to have in place to be able to secure coverage. As attackers become more sophisticated and risks become more threatening, insurance requirements are getting tougher, and cyber insurance premiums are predicted to continue to rise.
What can companies do about these increasing policy costs? How can they show insurers that they are great candidates for high-quality coverage? With SOC-as-a-Service, you’ll complement your cybersecurity foundations and further demonstrate to providers that you’re eligible for coverage and have the right defenses that can lower premiums as well.
Let’s dive into the current state of the cyber insurance landscape, what it takes to qualify, and how companies can prepare to meet qualification requirements.
The State of the Cyber Insurance Landscape
It’s no secret that cyber attacks are becoming more sophisticated and that, as more personal, company, and customer data are stored in digital spaces, there is more at risk from attacks than ever before. As a result, the need — and requirements — for cyber insurance has skyrocketed.
According to European insurer Munich RE, cyber premiums worldwide were $9.2 billion at the beginning of 2022 and are predicted to reach $22 billion by 2025. On a more individual level, in 2019, companies paid an average of $1,500 per year for $1 million in coverage, with a $10,000 deductible.
As of 2021, a midsize business with more than $100 million in revenue currently can pay anywhere between $5,000 and more than $10,000 in premiums per $1 million in coverage. Regardless of company industry or size, the top 25% of companies saw cyber rate increases of 83.3% in the first quarter of 2022.
As the cost of threats increases, the coverage rates that companies are insuring increase, as well. In a survey by Statista, of companies that were planning on getting or already have cyber insurance loans, the highest percentage (36%) were getting plans between $200 million and $1 billion, and 20% were getting plans over $5 billion.
Cyber Insurance Requirements
The security requirements vary by cyber insurance company and the insured company, but there are some common requirements that are generally seen across the board.
- MFA/2FA: Multi-factor authentication or two-factor authentication is one of the more effective ways to prevent automated attacks from compromising accounts.
- Firewall: This is a fairly easy solution to implement that reduces the risk of your network being exposed too easily.
- AV/Malware detection: An antivirus tool can help prevent and stop malware or other forms of malicious code or software from making its way into your environment.
- EDR: Endpoint detection and response (EDR) tools can help organizations detect anomalous behavior and unauthorized entry, allowing the company to react quickly and minimize the damage done by a potential compromise.
Many cyber insurance companies are also actively requiring Managed Detection and Response (MDR) in order to prove that companies are employing proactive threat detection and continuous, real-time responses to cyber attacks.
Benefits of SOCaaS for Cyber Insurance
As more companies are experiencing rigid cyber insurance requirements and climbing premium rates, it is important to consider the benefits of an end-to-end SOC-as-a-Service solution in support of a cyber insurance application or renewal.
Cyber insurance qualification
Many companies may be attempting to apply for cyber insurance but don’t completely meet the qualifications set forth by the insurer. Integrating SOCaaS demonstrates to the insurer that your company is invested in more effective, faster threat detection and response, strives to keep incidents at a minimum, and meets the requirements listed above.
Lower cyber insurance premiums
With the trends in cyber insurance and the increase in cyber incidents, companies that already have insurance may be anticipating a premium increase. Having an end-to-end cybersecurity solution can demonstrate your company’s commitment to cyber defense, qualifying you to keep your premium lower.
Cyber insurance discounts
Cyber insurers are incentivizing companies to further bolster and invest in their cybersecurity posture by offering discounts on insurance costs. This is a great opportunity for organizations to reap multiple rewards by investing in SOCaaS solutions that are quickly becoming necessary in a threat-filled environment.
Take Control of Your Cyber Insurance with Cysiv SOCaaS
Integrating SOCaaS as a part of your cybersecurity initiative is an important way to help your business qualify for cyber insurance and keep costs as low as possible. Cysiv’s end-to-end cybersecurity management solution detects, investigates, and remediates threats across complex IT environments, showcasing your company’s investment in cybersecurity to cyber insurers.
Plus, building your own SOC or paying for the staff and tools to meet cyber requirements can be incredibly expensive and can take well over a year to fully operationalize, but Cysiv’s SOC-as-a-Service pricing addresses the needs of small, mid-size, and larger enterprises, provides both flexibility and predictability, and can be fully operational in a matter of weeks.
Get in touch with our team to learn how you can check off cyber insurance requirements and reduce costs with Cysiv SOCaaS.