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Cyber Insurance: Why It’s Getting More Expensive and What You Can Do About It

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Cyber insurance has evolved from a niche policy to a business-critical safety net and premiums are climbing fast. As cyberattacks become more sophisticated and frequent, insurers are adjusting their requirements, reducing coverage, and increasing costs. That means businesses must take a proactive approach to cybersecurity not just for protection, but also to remain insurable.

At EXOS CYBER, we partner with organizations to help them meet the rising demands of cyber insurance. This blog breaks down why costs are increasing, what factors influence your premiums, and how you can strengthen your readiness with practical, measurable improvements.

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Cyber Insurance: Why It’s Getting More Expensive and What You Can Do About It

The Rising Stakes of Cyber Insurance

Organizations are making significant investments in cybersecurity—from endpoint protection and employee training to incident response planning. Yet, many are still facing rising premiums, reduced coverage, and stricter underwriting when it comes time to renew their cyber insurance policies.

This shift in the insurance landscape reflects the escalating volume and severity of cyber threats across industries. At EXOS CYBER, we work closely with our clients to help them understand these changes, strengthen their security posture, and ensure they are positioned to secure effective, affordable coverage.

In this blog, we explore the factors driving increased cyber insurance costs, the implications for your organization, and the steps you can take to reduce risk—and premiums—through strategic cybersecurity.

Why Cyber Insurance Costs Are Rising

1. Cyberattacks Are More Frequent and More Costly

Insurers are responding to a wave of increasingly sophisticated cyberattacks. Ransomware, phishing and business email compromise are on the rise, leading to costly payouts. These trends make insurers more cautious, raising the price of coverage across the board.

2. High Claim Volume Means Higher Premiums

With more claims being filed than ever before, many insurance providers are operating at a loss. To stay solvent, they’re raising premiums and tightening eligibility, especially for businesses without strong cybersecurity programs in place.

3. Underwriting Standards Are Tougher Than Ever

To qualify for cyber insurance, businesses now must prove they’ve implemented foundational security measures like:

  • Multi-factor authentication (MFA)
  • Endpoint protection
  • Data backup and recovery plans
  • Incident response protocols

Without these, some businesses are denied coverage entirely.

What Impacts the Cost of Your Cyber Insurance Policy?

1. Your Industry

Industries that deal with sensitive data—like healthcare, legal, education, and finance—face higher premiums due to greater exposure.

2. The Size of Your Organization

More employees, more endpoints, more data—larger organizations present more potential entry points for attackers, which drives up risk and coverage costs.

3. Your Cybersecurity Posture

The more proactive and mature your security framework, the more favorable your cyber insurance terms. Insurers want to see evidence of preventative controls, security training and clear documentation of incident readiness

“Cyber insurance isn’t just about covering losses—it’s about proving you’ve done the work to prevent them. Insurers want to see maturity in your cybersecurity program, and that starts with the basics: access controls, backups, and a well-documented response plan.”
— Cody Tyler, Chief Information Security Officer, EXOS CYBER

How EXOS CYBER Helps You Prepare for Cyber Insurance

We go beyond patching systems. We help clients build the kind of secure environments that insurers trust.

Our services include:

  • Cybersecurity risk assessments aligned to insurance questionnaires
  • Policy-driven security controls and remediation
  • Support preparing documentation for underwriters
  • Cyber incident response planning and tabletop exercises

We act as your advocate during the application or renewal process, helping you qualify for coverage and reduce your premiums.

Shifting Landscape

The cyber insurance market is evolving rapidly, shaped by the increasing frequency and impact of digital threats. As coverage becomes more expensive and selective, organizations must demonstrate a strong commitment to cybersecurity—not only to secure insurance, but to maintain operational resilience and stakeholder trust.

At EXOS CYBER, we help our clients move beyond baseline requirements. Through layered defense strategies, expert advisory services, and a proactive approach to risk management, we prepare organizations to meet today’s challenges and tomorrow’s expectations.

If your organization is navigating the complexities of cyber insurance, we’re here to help.
Let’s work together to build a more secure, insurable future.