Cyber insurance as part of the cyber threat mitigation strategy

This article argues that cyber insurance should be a core component of organizational risk mitigation, noting that ransomware drives the majority of claims (e.g., NetDiligence 2018–2022: 85%) and that some insureds pay ransoms (Coalition 2023: 40%), which can create moral hazard and rising premiums. It explains that insurers increasingly require stronger security controls—backups, employee training, vulnerability and patch management, network segmentation aligned to zero trust, EDR, SIEM, and MDR—to improve insurability and reduce claims. The piece also highlights barriers for small and mid-sized businesses (complex questionnaires, resource gaps), references schemes like Cyber Essentials, cites an average 2022 claim around $180,000, and concludes that maintaining good security posture plus cyber insurance is now a standard cost of doing business.