Cyber Liability Insurance: What Underwriters Look for in 2025

In 2025, cyber insurance underwriting has become more stringent than ever. Insurers are no longer just checking boxes—they're conducting thorough evaluations of your organization's cybersecurity posture before issuing or renewing policies. Failing to meet these heightened expectations can lead to increased premiums, reduced coverage, or even denial of coverage.

Key Factors Underwriters Evaluate

1. Multi-Factor Authentication (MFA):
   Underwriters expect MFA to be implemented across all critical systems, including email, VPNs, and administrative access points. Conditional MFA, which adapts based on user behavior and risk factors, is increasingly favored.

2. Endpoint Detection and Response (EDR):
   Robust EDR solutions are essential. Underwriters look for tools that provide real-time monitoring and can swiftly detect and respond to threats.

3. Regular Data Backups:
   Maintaining secure, regular, and tested backups is critical. Underwriters assess whether your organization can restore operations quickly after an incident.

4. Security Awareness Training:
   Human error remains a leading cause of breaches. Underwriters expect organizations to conduct regular training sessions to educate employees about phishing, social engineering, and other cyber threats.

5. Incident Response Plan:
   A documented and tested incident response plan is vital. Underwriters evaluate whether your organization can respond effectively to cyber incidents to minimize damage.

6. Vendor Risk Management:
   Third-party vendors can be a significant source of risk. Underwriters assess how you manage and monitor the cybersecurity practices of your vendors.

Preparing for Underwriting Scrutiny

• Start Early: Begin preparing for policy renewal well in advance. Gather necessary documentation and assess your current cybersecurity measures.

• Conduct a Risk Assessment: Identify gaps in your cybersecurity posture and address them proactively.

• Engage Stakeholders: Ensure that IT, legal, and executive teams are aligned and understand the importance of meeting underwriting requirements.

Conclusion

Meeting the evolving expectations of cyber insurance underwriters in 2025 requires a proactive and comprehensive approach to cybersecurity. By understanding what underwriters look for and taking steps to strengthen your cybersecurity posture, your organization can secure better coverage terms and protect itself against the financial impact of cyber incidents.