Cyber insurers are offering valuable tools that could significantly reduce identity risk for organizations, but most aren’t using them. One of the most significant advancements in the cyber insurance sector is the increased emphasis on loss control services. These services are designed to mitigate risk, enhance cybersecurity postures, and ultimately reduce the frequency and severity of cyber-related claims.
What are Loss Control Services?
Loss control services in the cyber insurance space refer to proactive risk management strategies that insurers provide to policyholders, often at no cost or a reduced rate. These services are typically offered annually upon policy renewal and give organizations access to expert guidance and tools that support stronger cyber hygiene and risk posture.
Loss control services include several key components:
- Security assessments: Identifying security risk exposures in an organization’s cybersecurity framework by evaluating network architecture, endpoint protections, patching practices, and policy enforcement.
- Identity risk assessments: Evaluating identity-related exposures that increase the likelihood of a cyber incident, including gaps in multifactor authentication (MFA) and the security of non-human identities (NHIs).
- Employee training: Educating staff on best practices to prevent cyber breaches, focusing on phishing attacks, password hygiene, and incident reporting protocols.
- Incident response planning: Helping organizations develop effective strategies for risk mitigation, incident response, and remediation.
- Endpoint protection solutions: Implementing modern cybersecurity tools to protect networks and devices, including deploying EDR/XDR platforms and improving visibility into endpoint behaviors.
- Compliance assistance: Supporting organizations in aligning with industry regulations and standards like GDPR, HIPAA, and NIST through security policies gap analysis and audit preparation.
Why Loss Control Services Matter
While the cyber insurance market has softened, the risk of ransomware and identity-based attacks remains high. Organizations of all sizes can be affected, and the costs can be significant. The increasing frequency and severity of cyberattacks have led insurers to re-evaluate their risk mitigation strategies, making loss control services a critical component of cyber insurance policies.
These services help reduce the frequency of claims by proactively addressing security exposures and lower claim severity by enabling faster, more effective incident response. They also enhance risk selection by giving underwriters greater visibility into a policyholder’s cybersecurity posture, potentially leading to more favorable terms and improved pricing.
Leveraging Loss Control Services
Organizations should take full advantage of the loss control services offered by their broker and carrier. In today’s cyber insurance market, loss control is not just helpful; it’s essential. These services are designed to proactively strengthen identity security posture, reduce the likelihood of costly claims, and help negotiate better coverage terms.
By utilizing the tools and expertise available, businesses can become more resilient and insurable. Before renewing or purchasing a new policy, organizations should explore what loss control services are included. The right support could mean the difference between surviving a cyberattack or suffering major losses.
About the Author: Stacie Lilien is Global Alliance Manager – Cyber Insurance at Silverfort. She is a seasoned cyber insurance professional with over a decade of experience in risk management and strategic partnerships.
