Cyber insurance has shifted from a “nice to have” to a boardroom imperative. As the frequency and severity of cyberattacks continue to rise, organizations across all industries are re-evaluating their risk postureโand insurers are doing the same. What was once a relatively straightforward underwriting process has evolved into a rigorous evaluation of your security program, your people, and most importantly, your identity security practices.
In this blog, weโll unpack what organizations need to know about cyber insurance in todayโs threat landscape, how trends are shaping premiums and qualifications, which industries are under the most pressure, and why identity-first security is now a critical factor in coverage eligibility. Weโll also explore how Savvy can help organizations not only qualify for coverage but potentially lower premiums by mitigating key risks that insurers care about most.
The Evolution of Cyber Insurance: Whatโs Changed?
Cyber insurance emerged over the last two decades as a way for organizations to protect themselves from financial losses related to data breaches, ransomware attacks, and other digital threats. However, in recent years, the industry has undergone a transformation. Why?
Because attackers got smarterโand bolder.
Payouts soared as breaches became more damaging and more frequent. Ransomware incidents alone have driven record losses for insurers, and business email compromise (BEC) attacks remain a leading source of cyber insurance claims. As a result, premiums have increased sharply, coverage limits have tightened, and insurers are demanding far more proof of security maturity before offering or renewing policies.
Cyber insurance is no longer just about financial recoveryโit’s about demonstrating resilience before a crisis ever occurs.
Industries Under Pressure from Cyberattacks
While every sector faces rising cyber threats, some industries are feeling the insurance squeeze more than others:
Healthcare: With highly sensitive data and a high rate of ransomware attacks, healthcare providers are facing some of the toughest requirements from insurers. Gaps in identity governance, third-party access, and legacy systems raise the risk profile significantly.
Financial Services: Regulations already demand strong controls, but cyber insurance underwriters are now going furtherโevaluating how institutions handle authentication, app sprawl, and privileged access management.
Manufacturing: Once overlooked, manufacturers are now targeted by ransomware actors due to their reliance on operational technology. The convergence of IT and OT has created new risks that insurers are actively watching.
Retail and eCommerce: With sprawling SaaS footprints and customer data at stake, these industries face a combination of credential-based attacks and application-layer vulnerabilities.
Across all sectors, one thing is clear: Identity-based attacks have become the most common path to breachโand insurers know it.ย
Why Cyber Insurance Matters More Than Ever
Cyber insurance doesnโt replace the need for a strong security programโit complements it. Organizations today must assume that breaches will happen. The question isnโt if, but when. Cyber insurance provides the financial and legal support to navigate the aftermath, covering costs like:
- Incident response and forensics
- Legal fees and regulatory fines
- Notification costs and public relations
- Business interruption and revenue loss
- Ransomware payments (depending on policy terms)
But having insurance isnโt just about protectionโitโs also about business enablement. Many third-party contracts, especially in healthcare and finance, now require proof of cyber coverage. Without it, deals can stall or fall apart.
The New Qualification Process: A Shift Toward Identity Security
To qualify for coverageโor even to renew existing policiesโinsurers now demand detailed evidence of your security posture. The application process often includes a review of:
- MFA enforcement across all users and apps
- Coverage and use of Single Sign-On (SSO)
- User and admin privilege management
- Credential hygiene and password policies
- SaaS and third-party app visibility
- Employee offboarding and access revocation processes
- Endpoint and browser security controls
Many organizations find themselves unprepared when they realize insurers are scrutinizing areas their existing IAM, IGA, and endpoint solutions werenโt built to fully coverโespecially around SaaS app usage, shadow IT, and identity hygiene.
How Savvy Helps You Strengthen Your Cyber Insurance Position
Savvyโs Identity-First Security Platform is purpose-built to address the identity risks that matter most to cyber insurers. Our platform works across your existing identity stackโSSO, IdP, MFA, IGAโand extends it to cover the blind spots that traditional tools miss.
Hereโs how Savvy helps you meet cyber insurance qualification requirements:
Continuous SaaS Visibility
Savvy provides a real-time inventory of all apps in useโapproved or not. This is critical for demonstrating app governance, reducing shadow IT, and ensuring all apps are subject to the same access control policies.
Identity Hygiene and Risk Remediation
Our platform identifies โtoxic combinations of riskโ such as weak credentials, reused passwords, lack of MFA, and admin privilege misuse. We donโt just alert youโwe help you automate remediation before these become breaches.
MFA and SSO EnforcementโEven for Non-SSO Apps
Savvy detects when users are accessing apps outside of SSO or without MFA, even for apps that donโt support those standards. This helps you enforce identity policy universally and demonstrate stronger controls to your insurer.
Automated Offboarding
Many breach incidents (and insurance claims) stem from incomplete offboarding. Savvy ensures all user accessโacross every appโis removed the moment someone leaves. No more lingering accounts that introduce risk.
Auditable Reports and Posture Evidence
We deliver audit-ready reports that map directly to insurance questionnaires. When insurers ask for proof of control implementation, youโll have the data readyโin real time.
Cyber Insurance Is Just the Beginning
Qualifying for cyber insurance is not the finish line. Itโs the baseline. As insurers evolve their requirements and regulations continue to tighten, security teams must take a proactive approach to identity-first securityโnot just to reduce premiums, but to reduce the likelihood of needing to file a claim in the first place.
Savvy is the bridge between the controls insurers require and the operational realities of modern, SaaS-first work environments. With Savvy, you can protect your users, close your identity gaps, and show insurers that your organization isnโt just insurableโitโs resilient.
