Cyber insurers have tightened their underwriting standards in response to the rising frequency and cost of cyber attacks. Ransomware, business email compromise (BEC), supply chain attacks and data breaches have driven significant claims, prompting insurers to place greater emphasis on an organisation’s cyber resilience.

In the same ASD report, almost $84 million in self-reported losses from BEC during 2023–24, reinforcing why insurers now expect controls such as multi-factor authentication (MFA), email security and user awareness training.

As a result, cyber insurance renewals are no longer based on what organisations say they have implemented, but what they can prove. Underwriters increasingly expect evidence that key security controls are actively managed, regularly tested and well governed.

These controls aren’t simply technical recommendations; they’re increasingly the minimum standard for obtaining or renewing cyber insurance.

While insurers apply their own underwriting criteria, several core security controls now appear on almost every cyber insurance renewal questionnaire.

These commonly include:

• MFA across user and administrator accounts
• Endpoint Detection and Response is deployed across business devices
• Tested backup and disaster recovery procedures
• A documented incident response plan
• Vulnerability management and patching processes
• Email security controls
• Security awareness training for employees
• Business continuity planning

None of these controls is particularly new. What has changed is the level of scrutiny surrounding them. Businesses are increasingly expected to demonstrate that these controls are properly implemented, regularly reviewed and tested, not simply enabled once and forgotten.

One of the biggest misconceptions is that having an IT provider automatically means these requirements are already covered.

In reality, many businesses discover during renewal that while their Managed Service Provider (MSP) maintains their technology environment exceptionally well, they cannot readily provide evidence of continuous cyber security monitoring, incident response capability or advanced threat detection.

Questions such as:

• Who monitors your environment after hours?
• How quickly are threats detected?
• How are security incidents investigated?
• Can you demonstrate your response capability?

These are exactly the types of questions that reveal the difference between traditional IT support and specialist cyber security services, and why understanding that distinction is becoming increasingly important.

Although the terms are often used interchangeably, Managed Service Providers and Managed Security Service Providers (MSSPs) perform very different roles.

An MSP focuses on keeping technology running efficiently. Their responsibilities typically include user support, device management, cloud services, infrastructure maintenance, software updates and general IT operations.

An MSSP, by comparison, specialises in protecting the business from cyber threats. This includes continuous security monitoring, threat detection, security operations centre (SOC) services, incident response, vulnerability management and cyber security expertise.

Many organisations assume one provider should manage everything.

While this may appear efficient, separating operational IT management from independent cyber security oversight can provide significant governance benefits.

An independent MSSP brings an objective perspective to security monitoring, threat detection and risk reporting. Rather than relying on the same organisation to both manage the environment and assess its own security performance, businesses gain independent validation of their cyber posture.

For boards and executive teams, this creates clearer accountability.

It also provides stronger evidence during cyber insurance renewals because insurers increasingly value organisations that can demonstrate mature governance alongside technical controls. Evidence-based reporting, documented monitoring and independent oversight all help demonstrate that cyber risk is being actively managed rather than assumed.

For many organisations, the best outcome comes from combining a proactive managed IT partner with specialist cyber security expertise. Intech3 provides the day-to-day managed IT services businesses rely on, while trusted MSSP partners deliver advanced cyber security capabilities, including SOC monitoring, threat detection and incident response.

This separation of responsibilities provides several advantages:

• Stronger cyber security governance
• Independent security monitoring
• Faster incident detection and response
• Better reporting for executive teams
• Greater confidence during insurance renewals
• Reduced operational risk

Rather than trying to make one provider perform every role, businesses benefit from specialists working together to strengthen both operational performance and cyber resilience.

There is no guarantee that stronger cyber security will automatically reduce insurance premiums.

However, insurers consistently assess the security maturity when determining pricing, policy conditions and coverage limits.

Businesses that can demonstrate robust security controls, documented processes and effective governance are generally better positioned to negotiate favourable policy terms than organisations with significant security gaps. Strong security may also reduce exclusions and improve coverage options, depending on the insurer’s underwriting approach.

One area receiving increased attention from insurers is business continuity planning.

Preventing cyber attacks remains important, but insurers are equally interested in understanding how quickly a business can recover if an incident occurs.

Questions increasingly focus on:

• Have backups been tested?
• How quickly can systems be restored?
• Who manages incident communications?
• Has the incident response plan been exercised?
• How will critical business functions continue during an outage?

Businesses that can answer these questions confidently demonstrate resilience, not just prevention.

That resilience is becoming a key factor in modern cyber insurance underwriting as insurers place greater emphasis on response speed and recovery capability alongside preventative controls.

Cyber insurance renewals are no longer an administrative exercise, they’re an assessment of how well your organisation manages cyber risk. Meeting today’s requirements is about more than ticking boxes; it requires evidence, accountability and a mature security strategy.

For many businesses, the strongest approach is to combine a trusted MSP with specialist MSSP expertise. This provides the operational support, independent security oversight and governance that insurers increasingly expect.

Businesses that prepare well in advance of renewal will be better positioned to secure appropriate cover, strengthen cyber resilience, and minimise disruption when incidents occur.

If your next renewal questionnaire is already asking tougher questions, or you’re unsure whether your business can demonstrate the controls insurers now expect, it’s time to review your cyber security posture.

Intech3 helps businesses build secure, resilient IT environments that support both day-to-day operations and long-term growth. Working alongside trusted MSSP partners, we help organisations strengthen governance, improve cyber resilience and prepare for a smoother, more confident cyber insurance renewal. 

Contact the Intech3 team to discuss how your business can be better prepared before renewal time.