In the early days of cyber insurance, carriers were incredibly open-minded when crafting policies! They didn't yet have a full grasp of the associated risks, which resulted in substantial financial losses on their cyber policies.
Carriers have become aware of the true risk and cost associated with cybercrime and have started increasing the security requirements for their insured. To obtain a cyber policy now, you must complete a long questionnaire, offering a detailed description of all your security tools and processes. These questionnaires have led to the establishment of a set of core security controls. Lacking any of these controls could result in the rejection of your application. Remember, they are not only asking if you have these cybersecurity requirements in place, but you also need to provide proof now when making a claim!
Cyber Insurance Requirements: 5 Core Security Controls
1. Multi-Factor Authentication
Following numerous high-profile data breaches, several companies have started mandating multi-factor authentication (MFA) for cybersecurity purposes. MFA enhances the protection of sensitive information by requiring users to confirm their identity through multiple factors. The most typical type of MFA involves users supplying passwords, fingerprints, or other biometric identifiers. Nonetheless, other MFA methods can be employed, such as needing a user to have both a physical token and a knowledge-based factor (like a PIN).
If you are currently using MFA, think about upgrading to Conditional Multi-Factor Authentication. This approach enhances security by triggering MFA prompts based on risk factors, such as logging in from a new location, a new device, or countries where you don't usually work. For example, Conditional MFA may require extra verification only when users access the system from an unfamiliar location or device, thereby boosting security without interrupting low-risk access. As cyber insurance standards tighten, adopting Conditional MFA assists companies in meeting these security demands while ensuring a convenient experience for their team.
2. Air-gapped Backups
Many believe that a single data backup is enough to protect them from possible cyberattacks. However, this is not the case. To guarantee full protection, it's essential to keep your backups separate from your primary environment. If one backup is breached, you will still have another secure copy. Moreover, it's important to store backups in different locations. This ensures your data stays safe even if one location is compromised. Having separate backups is crucial for acquiring cyber insurance. Without them, you are at a much greater risk of being unprotected if your data is compromised.
3. Endpoint Detection & Response/Managed Detection & Response (EDR/MDR)
One key factor to consider when evaluating your organization's cybersecurity posture is whether your organization has implemented adequate endpoint detection and response (EDR) or managed detection and response (MDR) solutions. These systems play a pivotal role in safeguarding your digital assets and sensitive information from a myriad of cyber threats that are increasingly sophisticated and prevalent in today's digital landscape. EDR solutions provide real-time monitoring and analysis of endpoint activities, allowing for the identification of potential threats and vulnerabilities that may arise from various sources, including malware, ransomware, or insider threats. On the other hand, MDR services offer a more comprehensive approach by combining advanced technology with human expertise, ensuring that your organization is not only capable of detecting threats but also equipped to respond effectively to incidents as they occur.
In an era where cyber threats are evolving at an alarming rate, the importance of having robust EDR and MDR solutions cannot be overstated. Organizations that invest in these technologies are better positioned to protect their assets, maintain customer trust, and comply with regulatory requirements. The integration of EDR and MDR into your cybersecurity strategy not only enhances your ability to detect and respond to threats but also fosters a culture of security awareness within your organization. By prioritizing these solutions, you can significantly reduce the risk of successful cyberattacks and the potential fallout that follows.
4. Vulnerability Management
A vulnerability refers to a defect or weakness within an information system, system component, or application that a threat actor might exploit to gain unauthorized access to sensitive data or systems. Vulnerability scanning involves identifying these vulnerabilities, while vulnerability management encompasses the classification of identified risks and their remediation to eliminate the vulnerability. Your organization should integrate vulnerability scanning and management into its overall security strategy and conduct these processes at least quarterly.
Vulnerability scanning plays a vital role in vulnerability management. It assists organizations in detecting vulnerabilities within their network before they can be exploited by attackers. Conduct external vulnerability scans regularly to uncover any weaknesses that external threats might exploit. Perform internal vulnerability scans more often to identify weaknesses that malicious internal users might take advantage of.
Cyber insurance policies typically require companies to have an active and comprehensive vulnerability management program to qualify for coverage. Cyber insurance providers view vulnerability management as essential to risk mitigation and prevention.
5. Security Awareness Training & Testing
To be eligible for cyber insurance, companies need to establish a security awareness training and testing program. This keeps employees informed about security threats and protocols, thereby lowering the risk of phishing attacks. Regularly conducting mock phishing campaigns serves a dual purpose: it strengthens their security awareness training and establishes a basic level of caution regarding emails. When team members encounter suspicious emails, they are likely to refrain from clicking on anything, as no one wants to fail a test phishing email and be required to undergo additional training.
As a leader, phishing testing is an excellent way for you to understand your team’s susceptibility for phishing attacks. Your first test will establish your baseline fail rate, and the security awareness of specific people or teams. As you train your team and build a security-minded culture, your phishing test fail rates should reflect that effort and decrease. Find out more here on our Security Awarenss Training.
Hold onto your keyboards, folks! Here comes a list of more requirments for cyber insurance:
Up-to-date, active firewall technology?
Up-to-date, active anti-virus software on all computers, networks, and mobile devices?
A process in place to regularly download, test, and install patches. If Yes, is this process automated? If Yes, are critical patches installed within 30 days of release?
Multi-factor authentication for administrative or privileged access?
Multi-factor authentication for remote access to email ?
Remote access to the Applicant’s network limited to VPN?
Backup and recovery procedures in place for all important business and customer data?
Annual penetration testing? If Yes, is such testing conducted by a third party service provider?
Annual network security assessments and Vulnerability Management?
Systematic storage and monitoring of network and security logs?
Enforced password complexity requirements?
Procedures in place to terminate user access rights as part of the employee exit process?
Procedures for notifying stakeholders and regulatory bodies in case of a breach?
Regularly update and patch all systems and software to mitigate vulnerabilities?
...And the list goes on! Infact here is a link to an online cyber insurance application: Here
If you have questions about your cybersecurity posture, reach out to Kappa; we can assist you. If you're lacking any of requirements, we provide all services your cyber insurance demands. We can fulfill every requirement.
Kappa can help!
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