Do you know whether your current cybersecurity setup is meeting your cyber insurance requirements, or could it be quietly driving up your premiums without you realising it? Even worse, misaligned or insufficient protections could lead to denied coverage altogether.
In today’s digital landscape, cyber insurance isn’t “nice to have”; it’s essential. And just like any other type of insurance, the stronger your risk management practices, the better your coverage terms. So, what exactly are insurers looking for?
What Insurers Are Looking For in 2025
Cyber insurers have become increasingly selective about who they’ll cover and how much they’ll charge to do it. If your business doesn’t meet their expectations, you could be facing increased premiums, limited coverage, or outright denial.
Here are the critical protections insurers typically expect:
Multi-Factor Authentication (MFA) | Mandatory for all remote access, email accounts, and privileged admin users. MFA significantly reduces the risk of credential-based attacks, which are among the most common entry points for cybercriminals.
Secure Backups | Backups must be automated, encrypted, regularly tested, and stored separately (ideally offsite or in the cloud). This ensures you can recover quickly and completely in the event of ransomware or data loss.
Endpoint Protection | Comprehensive anti-virus, anti-malware and Endpoint Detection and Response tools, along with centralised management of all user devices. This includes real-time monitoring, threat detection, and the ability to isolate compromised systems.
Cloud Identity Protection | Ensuring the security of user identities and access across cloud platforms is critical. Insurers expect businesses to implement robust cloud identity protection strategies, including Single Sign-On (SSO) and Multi-Factor Authentication (MFA) across all cloud applications to help safeguard against unauthorised access.
Documented Policies and Training | Insurers want to see a formal cybersecurity policy, an incident response plan, and ongoing staff training to reduce the risk of human error. These show a proactive, educated workforce capable of identifying and responding to threats.
Regular Patching and System Updates | Outdated software is a common vulnerability. Insurers expect timely patching of all systems, applications, and devices to close security gaps before attackers can exploit them.
If you’re falling short in any of these areas, your insurer may apply additional exclusions to your policy, increase your premium, or even decline to renew your coverage.
Gaps in Your Cybersecurity Can Cost You
At IQPC, we’ve seen firsthand how strong cyber hygiene can empower businesses to negotiate more favourable terms with insurers. Unfortunately, we’ve also seen how lacking key controls can lead to premium hikes or coverage gaps that only become obvious when it’s too late.
By addressing the gaps in your security posture, you’re not just meeting insurer expectations; you’re aligning your organisation with recognised frameworks like the Australian Signals Directorate (ASD) Essential Eight, which many underwriters now use as a benchmark for coverage.
Another way businesses strengthen their position is by achieving SMB1001 Certification, a standard specifically designed to help small to medium-sized enterprises improve cybersecurity maturity. SMB1001 focuses on practical, actionable security controls that demonstrate a commitment to risk management, something insurers are increasingly looking for when assessing cyber risk. Certification can reduce operational vulnerabilities and provide insurers with tangible evidence of your security posture, helping you secure better policy terms.
To learn more about the Essential Eight, explore our blog ‘What You Need to Know About the Essential Eight’.
Why Better Cybersecurity Is a Win-Win
The benefits of better cybersecurity go far beyond simply meeting your insurance requirements; you also:
Reduce Risk of Attack | Proactive measures help prevent breaches before they happen, saving time, money, and stress.
Increase Trust | Clients, suppliers, and stakeholders are more confident when they know their data is protected.
Peace of Mind | With the right controls in place, you can focus on running your business instead of worrying about vulnerabilities.
Improve Business Continuity | In the event of an incident, secure businesses recover faster, with minimal operational disruption.
Cybersecurity isn’t just an IT function; it’s a strategic investment in your business continuity, reputation, and bottom line.
Ready to Review Your Cyber Risk Profile?
At IQPC, we work with businesses to strengthen their cybersecurity, not just to stay safe but to stay competitive.
Whether you’re preparing for a cyber insurance renewal or simply want to understand your current risk profile, we can help you take the next step with confidence.
Book a chat with our IT experts today to review your setup and align your systems with industry best practices and insurer expectations.
