Insurers Use Claims Data to Recommend Cybersecurity Technologies

Insurers Use Claims Data to Recommend Cybersecurity Technologies

February 22, 2024 at 04:37PM

Businesses benefit from using managed detection and response (MDR) services, which cut median response time to cyber incidents by half and reduce incident impact. Such firms may receive discounts on cyber insurance premiums based on deployed MDR. The data-driven approach of insurtech firms like Coalition may lead to tailored cybersecurity product recommendations. Forrester Research advises caution, highlighting potential limitations in insurtech-driven cybersecurity decisions.

From the meeting notes, it is evident that there is a strong emphasis on the impact of managed detection and response (MDR) services on cybersecurity incidents and insurance claims. The key takeaways from the discussion are:

1. MDR significantly reduces the response time to cyber incidents and the severity of their impact, leading to potential discounts on cyber insurance premiums for organizations with advanced security technology in place.
2. Managed endpoint detection and response (EDR) platforms, in combination with skilled cybersecurity professionals, result in fewer and less serious incidents, as indicated by the insights from the cyber insurance firm Coalition.
3. The analysis from Forrester Research reveals that companies can save significant time and cost on incident response by utilizing MDR services, benefitting from the expertise, automation, and accuracy provided by specialized MDR providers.
4. The choice of technology platforms, such as Google Workspace and Microsoft Office 365, can have a direct impact on the frequency of insurance claims related to financial transaction fraud, highlighting the importance of selecting secure technology solutions to minimize risk and potential claims.
5. Through a data-focused approach, insurtech firms like Coalition aim to gather accurate information on the effectiveness of cybersecurity products, potentially leading to tailored recommendations for businesses based on their risk profiles and IT environments.

Overall, the meeting notes highlight the growing influence of cyber insurance firms in shaping cybersecurity strategies and technology adoption, emphasizing the need for organizations to prioritize foundational security controls and consult with their cyber insurance providers for guidance on effective security solutions.

Full Article