Cyber insurance has become a larger part of the cybersecurity risk management process for businesses. This is due to the rising potential impacts of cyber threats to sensitive data. As a result, cyber liability insurance market is changing rapidly. These changes include reduced coverage limits, increased premium, and requirements for adequate security controls for cyber coverage.
Trends in the Cyber Insurance Industry
In the last few years the cyber insurance industry has seen a marked growth of small and medium sized enterprises are realizing that a cyber incident could destroy their businesses. As a memorandum released by the National Association of Insurance Commissioners (NAIC) points out however, cyber insurance is no substitute for a sound cybersecurity program.
The global cyber insurance market is projected to be worth over $20 billion by the close of 2025. The number of businesses taking out cyber insurance policies has risen to 62% of firms in 2025 compared to 49% in 2024. The market is expected to continue growing, with projections suggesting it could reach nearly $30 billion by 2030. Meanwhile, premiums have decreased by about 6% in 2025 compared to the previous year.
Requirements for Obtaining Cyber Insurance
Businesses must. at a minimum, employ specific security requirements. These requirements include the use of Multi-Factor Authentication (MFA), Endpoint Detection and Response (EDR), scheduled backups, vulnerability management, and cybersecurity training.
Remediation efforts should be documented to reflect patches and configuration changes. Lastly, monitoring and reporting functions should be performed to identify new vulnerabilities and implement remediations in an effort to continually improve the organization’s security posture.
Vulnerability management involves identification of devices, software and computer systems within an organization. These assets should be scanned for vulnerabilities on a regular schedule. Risk assessments should be conducted when vulnerabilities are identified and accepted risk management frameworks should be used to rank them.
Remediation efforts should document patch management and configuration changes. Additionally, continuous monitoring and reporting should be conducted to identify new vulnerabilities and remediate them.
Insurers may also require incident response plans to address cyber incidents and data breaches. They may also look for documented security policies that adhere to specific industry standards and regulations. Failure to meet these requirements can result in application rejection or higher premiums.
Business Regulatory Requirements for Information Security
Businesses must comply with various cybersecurity regulations that depend on their industry and location. Key regulations include the Health Insurance Portability and Accountability Act (HIPAA) for healthcare, the Gramm-Leach-Bliley Act (GLBA) for financial services, and the Payment Card Industry Data Security Standard (PCI DSS) for companies handling credit card information.
In addition to regulatory requirements, government contractors must adhere to specific contractual requirements to protect sensitive information. These requirements are primarily driven by the Department of Defense (DoD) and include compliance with the Cybersecurity Maturity Model Certification (CMMC) and the National Institute of Standards and Technology (NIST) guidelines.
CVG Strategy Cybersecurity Consultants
Cyber insurance trends reveal that many small businesses are facing challenges meeting cyber security requirements because of limited budgets, a lack of qualified personnel, and the complexity of standards. CVGS can provide guidance and help your organization understand and implement contractually required NIST standards and CMMC.
We are dedicated to helping small businesses navigate federal regulations and contract requirements for Quality Management, Cybersecurity, Export Compliance, and Test and Evaluation. We can help you meet your information security management system goals. CVG Strategy QMS experts can provide the training required to understand and engage in a ISMS and make it meet desired objectives.
Identify CUI Areas with CVG Strategy Signs
CVG Strategy provides signs to identify areas containing CUI and export controlled items. These signs should be posted at all facility entrances where products are being produced or services are being performed that are under the control of the U.S. Department of State Directorate of Defense Trade Controls (DDTC) and are subject to the International Traffic in Arms Regulations per title 22, Code of Federal Regulations (CFR), Parts 120-130.