US firms using advanced technologies such as AI to secure cyber coverage

US companies are increasingly adopting advanced technologies such as artificial intelligence (AI) to secure robust cyber insurance coverage and mitigate rising costs, according to a new report from cybersecurity firm Delinea.

The 2024 State of Cyber Insurance Research Report reveals that half of US companies are now leveraging AI-supported threat detection and monitoring solutions. “These advanced technologies are proving instrumental in reducing cyber insurance premiums, offering a strategic advantage to policyholders in an environment where overall insurance costs are on the rise,” said Delinea.

The report reveals that cyber insurance claims remain high, with 62% of respondents filing a claim in the last 12 months, and over 27% of these have filed multiple claims. Nearly half (47%) of attacks leading to insurance claims are linked to identity and privilege compromises.

The report also highlighted that 41% of insurance companies require proof of least privilege access controls or authorisation before granting a policy. In addition, 95% of US companies reported the necessity of investing in identity security solutions before obtaining cyber insurance.

Delinea said the findings emphasise the need for robust identity security measures as a fundamental component of any organisation’s cybersecurity strategy, and underscore the growing demand for stringent identity security protocols to secure comprehensive coverage.

“Insurance companies increasingly require proof of robust identity controls, with 41% demanding evidence of least privilege access. Given that identity and privilege compromises account for 47% of attacks leading to insurance claims, this is hardly surprising,” said Rick Hanson, president of Delinea. “Investing in identity security solutions has become essential for securing cyber insurance. At Delinea, we address these demands with AI-driven solutions that enhance security, deploy quickly, and require 90% fewer resources than our competitors. Our platform ensures organisations meet stringent insurance requirements while significantly bolstering their overall risk management.”

C.J. Dietzman, senior vice-president at Allianz Insurance Service, added: “The frequency of claims tied to identity compromises underscores the ongoing gaps in many organisations’ security strategies. Insurers now require clear evidence that identity risks are being proactively managed. Delinea’s security solutions empower organisations to detect and respond to threats quickly, reducing both the likelihood of incidents and the severity of claims.”