What is the role of multi-factor authentication in obtaining cyber insurance?

Multi-factor authentication is often required by insurers as it enhances security by adding an extra layer of protection beyond just passwords. This reduces the risk of unauthorized access to systems and sensitive information, making it less likely for a cyber incident to occur. Insurers view organizations using multi-factor authentication as practicing good cybersecurity hygiene, which can lower the likelihood of a successful cyber attack.

In terms of how multi-factor authentication impacts a business’s ability to get cyber insurance, having robust security measures such as multi-factor authentication in place can make a business more attractive to insurers. It demonstrates a proactive approach to cybersecurity, potentially leading to lower insurance premiums or better coverage terms. Conversely, a business lacking strong security measures like multi-factor authentication may be seen as higher risk by insurers, leading to higher premiums or even difficulty obtaining cyber insurance coverage.