Privileged Access Management: A must to fulfill Insurance Requirements 

The Context 

There is a saying ‘it’s better to be safe than sorry’!  

Taking adequate risk preventive measures is always better and safer than reacting to cyber threats. Today, the nature of cybercrime is too sophisticated, and it possesses an uncanny ability to inflict damage by exploiting security vulnerabilities at any point. Not just organized cyber criminals but also malicious insides pose bigger threats to organizations continuously. 

In almost every industry, large and mid-scale organizations have faced financial turmoil due to non-compliance penalties or loopholes in complying with IT standards. That is why demand for cyber insurance has been at an all-time high in the last few years. However, it can never be a replacement for robust security controls and practices. An organization is better positioned to qualify for a cyber insurance policy if it has robust cybersecurity mechanisms and controls. Because the higher and stronger the IT security infrastructure and policy, the lower is the insurance premium. 

What and Why of Cyber Insurance 

Cyber insurance, also known as cyber liability insurance or cybersecurity insurance, protects businesses from financial losses caused by various cyber incidents.  

The demand and importance of cyber insurance is growing increasingly as third-party partners and customers require cyber insurance coverage as a primary condition of doing business. This stringent requirement has made cyber insurance not just an option but a mandatory necessity for many organizations. Both parties understand that cyber risk is eventually business risk. Measures to mitigate such risks are cross-functional, especially when it comes to risk transfer via cyber insurance. 

According to Forrester’s Security Survey report, 2023 – 

“18% of global enterprise security decision-makers view the acquisition of cyber insurance as a top strategic priority over the next 12 months” 

“83% of enterprise security technology decision-makers have cyber insurance coverage today.” 

Now the question is why has there been an INCREASING DEMAND for cyber insurance in the recent past? Some reasons are: 

• Financial Protection: It helps to cover the costs associated with cyber incidents, such as data breaches, ransomware attacks, phishing attacks and other cybercrimes. This includes expenses for legal fees, notification costs, and recovery efforts. 

• Business Continuity: Cyber insurance can provide resources to help a business quickly recover from a cyber incident, minimizing downtime and IT operational disruptions. 

• Risk Management: Having cyber insurance encourages businesses to adopt better cybersecurity practices. Insurers often require policyholders to implement certain predefined security measures, which can reduce the probability of any cyber incident. 

• Regulatory Compliance: Many industries have regulatory compliance standards that require businesses to follow mandatory clauses and protect sensitive data. Cyber insurance can cover compliance costs and any penalties resulting from a breach. 

• Reputation: A cyber incident can damage a company’s reputation. Cyber insurance often includes coverage for public relations efforts to manage and mitigate reputational harm. 

In a nutshell, cyber insurance acts as a safety net, providing financial and operational support in the event of a cyber incident. It helps businesses manage the complex and evolving landscape of cyber risks. 

Now, the question is – what is the best bet to ensure lower cyber insurance premiums? 

To build robust cybersecurity controls and practices, organizations bank on the best solutions that detect vulnerabilities, mitigate threats, and comply with regulatory standards. Implementing Privileged Access Management (PAM) strengthens the foundation for a robust identity and access management (IAM) framework. It offers key security components to monitor end-user activities, build secure access mechanisms, safeguard privileged accounts and confidential information and comply with regulations. 

According to 2024 Gartner Magic Quadrant for Privileged Access Management report,  

“Cybersecurity insurers require clients to have a strategy for managing privileges in their environment…  Clients should expect cybersecurity insurers to continue to scrutinize how privileged access is managed, in return for an insurance policy or lower premiums.” 

ARCON | Privileged Access Management (PAM) solution, in this backdrop, not only ensures secured access in the enterprise network but also helps IT administrators accomplish their tasks efficiently and on time. The flexibility of the overall business process and the reliability of the stakeholders determine the extent of IT agility the organization has. It plays a crucial role in maintaining lower cyber insurance premiums by enhancing an organization’s security posture. Here’s how: 

• Reducing Risk of Data Breaches: ARCON PAM helps control and monitor access to critical systems and data, reducing the risk of unauthorized access and potential breaches. Insurers often favor organizations with strong access controls. 

• Compliance with IT Standards: Implementing ARCON PAM can help to comply with the regulatory mandates and IT standards for cybersecurity. Compliance with these standards can lead to lower premiums, as it demonstrates a commitment to robust security practices. 

• Incident Response: ARCON PAM includes features for monitoring and auditing privileged access. This helps to identify and respond to suspicious activities quickly, minimize the impact of a breach, and potentially lower the cost of claims. 

• Enhanced Security Measures: By enforcing the principle of least privilege, ARCON PAM ensures that users only have role-based access to critical information assets and necessary resources. This reduces the attack surface and the possibility of insider threats that can positively influence insurance premiums. 

• Demonstrating Proactive Security: Insurers prefer to cover organizations that take proactive steps to manage cyber risks. Implementing ARCON PAM shows that a company is serious about streamlining its IT operations and protecting its sensitive data and systems, which helps with more favorable insurance terms. 

Conclusion 

In summary, PAM helps organizations strengthen their security framework, making it less risky to insure. This can result in lower cyber insurance premiums and better protection against cyber threats.