Closer Collaboration with InsurSec for Enhanced Cybersecurity
Businesses are being encouraged to work more closely with their insurance providers, particularly those that integrate both insurance and cybersecurity services—known as InsurSec firms. According to a recent study by tech analyst firm Omdia, this partnership can lead to more effective risk reduction strategies.
The Role of Cyber Insurance
The study identifies cyber insurance as a best practice, with a significant number of businesses—72% of respondents—deeming it "critical" or "important". This implies that many organizations see it as essential to protecting against cyber threats. Furthermore, 43% of businesses reported that meeting the requirements set by their cyber insurance providers drives their cybersecurity spending. This percentage increases to 52% among larger enterprises, indicating that bigger organizations are even more influenced by these requirements.
Importance of Partnering with Cyber Insurers
Andrew Braunberg, an analyst at Omdia, notes that there is a growing trend for businesses to partner with cyber insurance providers to mature their cybersecurity strategies. He suggests there is great potential when companies align their cybersecurity efforts with insurance requirements, especially when collaborating with InsurSec providers. These relatively new entities combine cybersecurity tools and services with insurance products, offering comprehensive solutions for prevention and protection.
Proactive Security Solutions
Businesses are increasingly adopting proactive security solutions designed to identify and neutralize potential threats before they can cause harm. Over 70% of respondents increased their investment in these solutions over the past year. However, despite the reliance on cyber insurance, only 13% of businesses reported proactively working with their insurance providers to mitigate cyber risks.
Sector-Specific Challenges
The study also highlights challenges in specific sectors, such as manufacturing, energy, utilities, transportation, and healthcare. In these critical infrastructure sectors, proactive collaboration with cyber insurers is notably low. For instance, only 4% of manufacturing companies and 7% of energy, utility, and transportation companies reported engaging proactively with their cyber insurance providers. This poses significant risks given the potential for broader societal impacts.
Expert Insight
Thom Dekens, Chief Business Officer at At-Bay, emphasizes the value of cyber insurance in a proactive cybersecurity strategy. He noted that insurance providers with substantial in-house cybersecurity expertise offer significant business value. Such providers can collaborate closely with businesses to make informed decisions about technology strategies and enhance risk outcomes throughout the policy year.
