Cyber insurers are cracking down on policy requirements
By Sophie Van Remortel: Digital Marketing & Content Coordinator
With the conclusion of the 2021 Vancouver International Privacy and Cybersecurity Summit one message is clear - all organizations applying for cyber insurance must add multi-factor authentication (MFA) to logins. Without MFA organizations won’t receive coverage.
The big question stemming from these fortified requirements is ‘why?’. According to Derek May, a Vancouver-based account executive and cyber specialist at HUB International Insurance Brokers, insurers are tired of paying claims for data breaches.
States in the Midwest, specifically Wisconsin, continue to be some of the most impacted by cyber breaches. R&R Insurance based in Wisconsin found that 80% of all breaches in the U.S. are small to mid-sized companies with less than 50MM in revenue. They also determined that the average cost of a cyber breach to a business owner is $85k in expenses, and 2-3 weeks in production time.
Multi-factor authentication protects against potential hackers by requiring employees to provide at least 2 forms of identity to access sensitive materials. Since January 1st of 2020, organizations applying for cyber insurance must show they are implementing a long list of cybersecurity technologies and practices, including MFA, and have an incident response plan to receive coverage. Failure to provide evidence of MFA will result in loss of or denial in coverage.
SWICKtech has long beat the drum on the importance of including MFA as a standard organizational practice. Our engineers ensure the solution is set up and working properly for each organization, and even provide one-on-one training for each member of your team to ensure MFA is being used properly. SWICKtech also provides ongoing support and service for all cybersecurity and MFA needs.
Security begins and ends with each individual within your organization. SWICKtech is already working with other organizations to install company-wide MFA practices. If your cyber insurance company, like many others, is requesting fortified requirements then contact SWICKtech today.