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Why Insurance Carriers Are Demanding Security Compliance From MSP Clients

Cyber insurance requirements are evolving rapidly. Here's what MSPs need to know to help clients maintain coverage and reduce premiums.

December 10, 20247 min readBy BrainstormMSP Team

The Shift in Cyber Insurance

The cyber insurance market has fundamentally changed. What started as simple questionnaires has evolved into rigorous security verification requirements. Carriers aren't just asking about controls—they're demanding proof.

Why Carriers Changed Their Approach

Rising Claims

Cyber insurance claims increased 300% between 2019 and 2023. Carriers paying out billions annually needed better risk assessment.

Ransomware Reality

High-profile ransomware attacks revealed that self-attestation was unreliable. Companies claiming to have backups often discovered they didn't—after it was too late.

Actuarial Sophistication

Carriers now have enough claims data to identify which controls actually prevent incidents. They're using this data to set requirements.

What Carriers Want Now

Continuous Verification

Annual questionnaires are out. Carriers want ongoing evidence that controls remain in place.

Specific Control Requirements

MFA on all remote access. Immutable backups. EDR on all endpoints. These aren't suggestions—they're requirements for coverage.

Third-Party Validation

Self-attestation isn't enough. Carriers increasingly require evidence from monitoring platforms or external assessments.

The MSP Opportunity

This shift creates significant opportunity for MSPs:

Become the Trusted Advisor

Help clients understand what carriers require and why. Position your team as the experts navigating insurance complexity.

Automate Evidence Collection

Implement systems that continuously gather the evidence carriers need. Make renewals painless.

Optimize Premiums

Clients with strong, documented controls get better rates. Help them achieve and demonstrate that posture.

Conclusion

Insurance compliance isn't going away—it's becoming more rigorous. MSPs who master this space will differentiate themselves and capture significant value.

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