The challenges of cyber risk assessment and cyber insurance are transforming the cybersecurity landscape, with technology service providers (TSPs) playing a pivotal role taking on these issues and improving the cyber insurance process. This is according to Info-Tech Research Group’s latest report.
The report Launch Cyber Insurance Support Services outlines how TSPs help organizations meet the increasingly demanding eligibility requirements for cyber insurance. The report includes practical strategies for TSPs to become essential partners in the insurance lifecycle, offering value across risk assessment, claims management, and policy renewal.
“Turning Point”
“The cyber insurance industry is at a turning point,” said Justin St-Maurice, principal research director at Info-Tech. “Organizations need robust security controls to qualify for coverage as insurers demand more due diligence.”
“The cyber insurance industry is at a turning point.”
Justin St-Maurice, Info-Tech.
The Blueprint
The blueprint identifies seven stages where TSPs can provide critical services, including risk assessments to identify vulnerabilities, policy selection based on financial implications, and implementation of cybersecurity controls to maintain compliance. TSPs can also streamline claims management by supplying detailed documentation and ensuring policy renewals with ongoing security improvements.
Seven Stages
- Risk Assessment – Conduct thorough cyber risk analysis and vulnerability identification to gauge exposure and ensure alignment with requirements.
- Policy Selection – Convert risk assessment findings into financial terms and recommend appropriate policies to address risk-transfer.
- Underwriting – Create detailed documentation, assist with onsite audits, and advocate for the organization’s cybersecurity stance to insurers.
- Implementation and Maintenance – Regularly monitor, audit, and test cybersecurity controls, performing frequent penetration tests to ensure compliance.
- Incident Response – Manage incident response in collaboration with insurers, providing updates, avoiding redundancies, and ensuring all entitled services are utilized.
- Claims Management – Submit comprehensive claims documentation, resolve disputes with technical evidence, and verify compliance with policy terms.
- Policy Renewal – Evaluate the effectiveness of updated cybersecurity practices, assess insurance usage, and renew policies based on current risks and innovations.
With Artificial Intelligence threats evolving, insurers are, not surprisingly, raising their own bars for coverage. For TSPs, the opportunity is clear. They can align with these stricter standards, mitigating risks and optimizing processes for insurers and policyholders. Info-Tech’s report positions TSPs as strategic intermediaries, vital for reducing breach risks and maintaining insurability in a rapidly changing cyber insurance industry.
The full report is available through Info-Tech Research Group, here.
Other News: The Future of Cyber Insurance: Stand-Alone Coverage + M&A(Opens in a new browser tab).
