Cybersecurity breaches are increasingly common among small and medium businesses (SMBs), making them ideal targets for cybercriminals. Due to limited budgets, lack of expertise, and the misconception of being “too small to be targeted,” many SMBs operate with minimal cybersecurity defenses. Unfortunately, this vulnerability is exactly what cyber attackers rely on, exploiting weak defenses through relentless attacks and sophisticated phishing campaigns. In India alone, ransomware attacks on websites surged by 261% this year, with insurance companies often left covering the damage.
This raises an important question: How are organizations that specialize in risk management being blindsided by cyber threats? The answer lies in inadequate security practices. Many businesses lack critical defenses such as multi-factor authentication (MFA), phishing-resistant employee training, reliable backups, and endpoint detection and response (EDR) systems. Additionally, the rapid shift of SMBs to cloud platforms introduces complex configurations that exceed the technical capacity of many small businesses
Learning from History: An Insurance and Cybersecurity Alliance
A historical parallel can be drawn from fire safety. In the 20th century, insurers stopped covering buildings that lacked sprinkler systems, a move that not only minimized payouts but also saved lives. Today, insurers are facing a similar crossroads with cybersecurity.
Currently, insurers often rely on third-party cybersecurity firms to contain breaches, recover compromised data, and assess the damage. However, this reactive approach is costly and inefficient. To move beyond this model, insurance providers need to adopt a more collaborative, “inside-looking-out” strategy, where businesses share security insights proactively.
This shift would require insurers and cybersecurity providers to form partnerships, fostering a proactive ecosystem that emphasizes prevention and protection. For example, healthcare providers are already using telemetry tools like FitBit to monitor patient data and control costs. A similar approach in cybersecurity could transform risk management for both SMBs and insurers.
The Role of CIS Controls in Strengthening Cyber Defense
One widely accepted security framework among insurers is the Center for Internet Security’s Critical Security Controls (CIS18). These controls provide a clear roadmap for businesses to strengthen their networks and systems. Aligning with CIS18 offers several advantages for both SMBs and insurers:
Standardized Security Assessments: Insurers can evaluate a business’s current security posture and develop improvement plans over a 12-month period, helping them move toward better protection.
Transparent Data Sharing: Insurers gain access to detailed cybersecurity reports, enabling more accurate risk assessments and tailored policy options.
Enhanced Coverage and Discounts: Businesses that meet higher cybersecurity standards can qualify for policy benefits such as premium discounts, higher coverage limits, or reduced deductibles.
To Know More, Read Full Article @ https://ai-techpark.com/role-of-insurance-in-cyber-defense-enhancement/
Related Articles -
Trending Category - IOT Wearables & Devices
