What is the significance of network segmentation in obtaining cyber insurance?

Network segmentation is considered important for obtaining cyber insurance because it helps to reduce the overall risk exposure of an organization. By separating a network into different segments or zones, each with its own security controls and access restrictions, the impact of a potential cyber incident can be contained within a limited area rather than spreading across the entire network. This containment limits the scope of damage that can be caused by a cyber attack, which, in turn, reduces the financial risk for insurance providers. Additionally, network segmentation can help prevent lateral movement by cyber attackers within the network, making it more difficult for them to escalate their access and carry out further malicious activities. Overall, network segmentation is a proactive measure that demonstrates a commitment to cybersecurity best practices, which can potentially lead to lower insurance premiums and better coverage terms.