The skyrocketing rate of ransomware attacks and other cybercrimes in recent years is alarming. As many people continue to work and access data in remote and hybrid settings, the number of security blind spots has ballooned, creating more room for costly attacks. In one of the incidents, an insurance company had to pay close to $40 million in ransom to regain its network control after a ransomware attack. Forecasts show that the cost of cybercrimes will reach approximately $10.5 trillion by 2025. Due to such massive losses, the cyber insurance marketplace has no choice but to implement significant changes to enhance cybersecurity. It's now common for underwriters to ask for more information about IT risk management and ransomware loss controls.
Cyber Insurance Requirements: Why MFA and EDR are Essential
In your search for answers to the question "What tools do I need in place for a cyber insurance policy," you will find out that cyber-insurance providers will usually assess their clients based on a predetermined minimum standard.
Multi-Factor Authentication (MFA) and Endpoint Detection and Response (EDR) have become two valuable tools in the cybersecurity space. With the tools, clients in the cyber insurance space can avoid losing their coverage policies or being slapped with a retention hike of 100% or more.
What Is MFA and Why Is It Essential?
MFA is a cybersecurity measure in which users confirm their identity using several elements before accessing a network or system. Most MFA solutions entail a password verified by inputting a code sent to another device owned by the user. Alternatively, a user can confirm access through biometric data such as fingerprints or facial recognition.
MFA protects remote networks, administrative access, and email access, making it impossible for malicious actors to breach networks by stealing sensitive information, erasing valuable data, or deploying ransomware. It protects businesses by creating an extra protective layer to block 99.9% of attacks from compromised accounts.
What Is EDR and Why Is It Essential?
Cyber insurance providers emphasize endpoint security, often EDR because most breaches begin at the endpoint. Most users encounter malware at the endpoint, where hackers find a path to access a target network. If endpoints are not well protected, an entire organization could be at risk of a breach.
Endpoint Detection and Response solutions leverage the enterprise endpoint as a cybersecurity sensor to identify and respond to threats and security events. Users can implement the solutions alone or incorporate them into traditional endpoint protection functionalities such as an antivirus.
How MFA and EDR Protect Users From Cyber Insurance Denials
The cyber insurance requirement for businesses to implement MFA and EDR comes from a common understanding that traditional and more straightforward countermeasures can no longer keep sophisticated cybercriminals from attacking platforms, systems, or networks in cyberspace.
EDR relies on artificial intelligence to detect suspicious behavior at the endpoint, sending an alert that an attack is occurring. The response feature in an EDR solution kicks in, facilitating an effective reaction to counter the attack. It goes a long way in reducing the overall cost of containing the breach or correcting the adverse outcome.
As mentioned earlier, MFA blocks access by malicious actors, stopping them in their tracks. Cyber insurance carriers want to see MFA and EDR in place before issuing a policy. The presence of these tools is an assurance that insurance claims from businesses with these tools in place will be fewer than from those without the tools. After all, the best cyber insurance claim is the one never filed.
Start a Cyber Insurance Policy
With the ever-evolving cybersecurity threats, it's easy to get overwhelmed. While you have answers to "what tools do I need in place for a cyber-insurance policy," you also need expert guidance to keep you informed and on track against cyberattacks.
Trava is your trusted cybersecurity advisor. We work hard to simplify your most important security decision. We provide managed services to keep you informed and equipped to defend against cyberattacks. Our customized solutions effectively address your business needs on your budget. Contact us today to schedule a demo and learn how our solution works.