"Zero Trust" Software and Its Impact on Cyber Insurance

Implementing  Zero-Trust Architecture (ZTA) is often necessary to secure an organization from outside attacks and to protect internal business operations. ZTA has become so popular recently that many cyber insurers are now requiring its implementation prior to issuing a cyber policy. We will break down ZTA and many of its associated technologies here so your organization is best equipped to obtain a cyber insurance policy in this competitive marketplace.

Data from 2020 shows that the cybersecurity insurance market grew by about 29% from the prior year. According to a study by the Government Accountability Office, demand for cyber insurance has increased by 46% in 2020 alone. This has made the cyber insurance market all the more competitive, and while the market has prices rising, the coverage provided has often been shrinking. All of these factors are pushing carriers to require more stringent security policies.

Clients are subjected to an in-depth vetting process, evaluating every security measure from prevention, to detection, to recovery from an attack within a firm. Insurers also look for what procedures are followed to handle secure or sensitive data. These are all aspects of a robust zero-trust architecture.

The “Zero Trust” Concept

The philosophy behind ZTA seems simple: ‘never trust, always verify.’ What it represents, however, is a shift in security infrastructure across all levels of an organization. It requires network users to verify themselves at all points of entry, using multiple methods to authenticate their identities. It also may require that company communication be fully encrypted and that individuals are granted access only on a need to know basis, as opposed to full, unencumbered access to all data.

Insurance companies are aware that firms who have not implemented ZTA policies are more susceptible to cyber threats. A report released by IBM notes that an organization that has implemented a Zero-Trust Architecture has an average of USD 1 million less in data breach costs.

This architecture is especially important post-pandemic, when so many employees are now working remotely. Workers are accessing potentially sensitive data from a variety of devices and locations, some of which may be accessible to the public and to cyber threats. As such, firms with a ZTA approach to security often leverage multi factor authentication to prevent attackers from accessing systems with compromised credentials.

How to Obtain a Cyber Insurance Policy

Each firm applying for cyber insurance coverage is considered on an individual basis for their ability to successfully avoid an attack. Insurers are aware that 61% of all successful breaches happen via brute force, often using credential-stuffing attacks. As such, ZTA starting with robust multi factor authentication is a critical prerequisite for firms looking to get cyber insurance.

The stringent security requirements to qualify for cyber insurance may seem daunting at first, but they help to prevent successful cyber attacks by strengthening a firm’s security posture. Each firm should choose the path to ZTA that best fits their industry, capabilities, and coverage needs. Successfully deflecting attacks through ZTA depends on preparation and consistently adhering to the key principle of never trusting and always verifying.

The Limit Perspective

Limit is a digitally-native wholesale insurance broker working on behalf of retailers in multiple lines of insurance and across the United States. Our platform allows clients to:

• Obtain instant quotes from top cyber insurers
• Find up to $3M in Insurance coverage automatically
• Receive a plan with customizable and comprehensive coverage
• 24/7 support
  

Limit is building a lean, tech-enabled business that can efficiently deliver insurance policies which are tailored to the needs of individual clients. We have taken some of the first steps to revolutionizing the industry and welcome you to learn more on our website: www.limit.com

Please reach out and connect with us and our representatives on LinkedIn as well.