MSPs and the Cyber Insurance Shift
Insurance firms are working more closely with cybersecurity vendors and Managed Service Providers to improve their Cyber Insurance underwriting accuracy. The results are affecting small and mid-size businesses who need to show evidence of insurability (EOI). Insurers now expect greater preparedness, including detailed incident reporting and third-party accountability.
Insurers Are Demanding Stronger Security Controls
- Multi-Factor Authentication (MFA) is now commonly required for all critical systems, including email, VPNs, and administrative access, and carriers are favoring Conditional MFA that adapts based on risk level.
- Endpoint Detection & Response (EDR/MDR) is mandatory: insurers expect real-time threat detection and response capability for their insured.
- Air-gapped, tested backups, vulnerability management, and regular security training are standard prerequisites — complete with documentation.
- Incident response plans (documented and tested), vendor risk management, full encryption, and patching disclosed vulnerabilities within 30 days are more and more just common requirements.
Market Forces & the Rising Threat Landscape
- Insurers are adjusting underwriting rules and raising their premiums significantly due to huge ransomware payouts—the average ransom demand in 2025 is over $2 million and rising.
- Plus, the cyber insurance market is booming, currently valued at $16.5 billion. That’s billion with a “B” and that number is based on total gross written premiums (GWP). It’s projected to double by 2030, prompting carriers to embed risk assessments, threat intelligence, and response support into their policies.
What This Means for Businesses
- Cyber insurance requirements are often treated as a checklist for broader security controls — fulfilling insurer security demands can be a starting point for businesses that need to level-up their security protocols.
- Denied claims: Without evidence of proper controls, claims may be denied—even after a breach.
- MSPs become essential partners for implementing MFA, EDR, backups, phishing and simulated attack training, and documenting everything to meet underwriter checkboxes.
To Sum It Up
Cyber insurance in 2025 isn’t just a nice-to-have — it’s a must-have. Today’s underwriters demand MFA, EDR/MDR, secure backups, vulnerability management, incident response planning, and full documentation — or they won’t cover you.
Is your MSP managing these critical controls — or leaving you exposed and uninsurable?
Contact Network Titan to discuss your Cyber Insurance questions. We’ve been assisting other Southern California companies renew their policies with confidence.
📞 Call us at 619-255-2621 or book a call at your convenience: https://go.appointmentcore.com/intro-call