There will never be as good a time to purchase cyber insurance as the present. Cyber insurance has constantly adapted and evolved since its inception in 1995, so you know that you are getting coverage for the latest developments in the ever-changing cybersecurity landscape.
Unfortunately, this ever-changing cybersecurity landscape makes cyber insurance incredibly expensive. Did you know that the estimated cost of cybercrime in 2022 alone was $6 trillion? Insurance providers sure took notice of that number and, as a result, have jacked up their cyber insurance premiums if they haven’t left the cyber market altogether.
So, how else have insurance providers reacted to the massive costs associated with cybercrime? Many have stated that companies seeking cyber insurance need to take measures to reduce the risk of cyberattacks against them being successful. If organizations adhere to this ask and take precautionary cybersecurity measures, there is a reduced chance of a successful cyberattack and, as such, a reduction in the sum of payouts from the insurance providers. This seems like a win-win, but how can companies best take these precautions? By implementing MFA.
In fact, many insurance providers are touting MFA by name in their statements. Many UK providers now require organizations to meet the Cyber Essentials plus standard for passwords but call out a distinct preference for MFA if companies hope to receive cyber insurance. In the US, many larger providers are even demanding that organizations implement cryptographic, phishing-resistant MFA if they hope to buy cyber insurance.
If your organization wants cyber insurance, then MFA is a must-have. Implementing MFA substantially diminishes your risk of unauthorized access and cyberattacks. Perhaps more importantly in this scenario, though, your perceived risk significantly drops in the eyes of insurance providers and, thus, makes your premium plummet.
MFA, or Multi-Factor Authentication, is an authentication method that employs 2 or more verification factors to authenticate each user. These factors can include an email address, a hardware key, a smartphone, a password, and more. Unfortunately, though, not all MFA is unphishable. Even passwordless authentication is not unphishable across the board! As such, it is vital that your organization looks closely at the requirements set by insurance providers, as well as what is within your budget and/or capabilities, before pursuing implementation of MFA. For more information, be sure to check out our blogs on 2FA vs. MFA and if all passwordless authentication methods are unphishable.
Of course, passwordless authentication is the most secure MFA method your organization can possibly implement. If your organization goes passwordless, it will show to insurance providers that you are taking cybersecurity seriously and have gone with the best method to deter would-be hackers. If you want to learn more information about how going passwordless can help your organization, schedule a FREE consultation with one of our experts today!