Why Insurers Now Require MFA and EDR — and What Happens If You Don't Have Them.
Did you know that a significant number of cyber insurance claims in Ireland are being denied because businesses lack basic security controls? This isn't just a rumour; it's a stark reality facing SMEs across the country. Cyber insurance, once a safety net, is rapidly becoming a conditional lifeline, with insurers demanding more robust defences before they'll pay out.
The Rising Tide of Cybercrime and Insurers' Response
The digital landscape is a battlefield, and Irish businesses are increasingly in the crosshairs. Ransomware attacks, phishing scams, and data breaches are no longer abstract threats; they are daily occurrences that can cripple operations and devastate reputations. The financial toll of these incidents is escalating, forcing cyber insurers to re-evaluate their risk models.
In response, insurers are no longer simply offering policies; they are dictating the terms of engagement. They've learned that certain security measures dramatically reduce the likelihood and impact of an attack. Multi-Factor Authentication (MFA) and Endpoint Detection and Response (EDR) have emerged as the two non-negotiable pillars of modern cyber defence. Without them, your policy might be little more than an expensive piece of paper.
No MFA, No EDR: The Policy Invalidated
Imagine your business suffers a major cyber attack. You've paid your premiums, you believe you're covered, but then comes the devastating news: your claim is denied. Why? Because your policy explicitly stated that MFA and EDR were mandatory controls, and you didn't have them in place. This isn't hypothetical; it's a clause increasingly found in cyber insurance policies, and it means no MFA, no payout. It is in the policy. Did you read it?
MFA, or Multi-Factor Authentication, is like having two keys to your front door instead of one. Instead of just a password, it requires a second form of verification, such as a code from your phone or a fingerprint. This simple step makes it exponentially harder for cybercriminals to access your accounts, even if they steal your password. It's a fundamental barrier against unauthorised access.
EDR, or Endpoint Detection and Response, is your digital security guard, constantly watching over every device connected to your network – laptops, desktops, servers. It doesn't just block known threats; it actively monitors for suspicious activity, detects advanced attacks that bypass traditional antivirus, and provides the tools to quickly investigate and contain breaches. EDR is the eyes and ears of your cybersecurity, providing crucial visibility into what's happening on your endpoints.
| Feature | Multi-Factor Authentication (MFA) | Endpoint Detection and Response (EDR) |
|---|---|---|
| Purpose | Prevents unauthorised access to accounts | Detects and responds to advanced threats on devices |
| What it protects | User accounts, cloud services, sensitive data | Laptops, desktops, servers, and the data on them |
| Mechanism | Requires two or more verification methods (e.g., password + code) | Continuous monitoring, threat detection, automated response |
| Complexity | Relatively simple to implement and use | More complex to deploy and manage, often requires expert oversight |
| Primary Benefit | Stops credential theft and phishing attacks | Identifies sophisticated malware, ransomware, and insider threats |
Not sure where your business stands on cyber risk? Download the Irish SME Cyber Survival Guide — a free, plain-English guide to the 10 controls every Irish business needs. No jargon, no sales pitch.
Implementing MFA and EDR: Practical Steps and Costs
Implementing MFA across your organisation is often the easiest first step. Most cloud services like Microsoft 365 or Google Workspace offer built-in MFA options that are straightforward to enable. For other systems, dedicated MFA solutions are available. The cost is typically low, often included in existing software subscriptions or a few euros per user per month. The return on investment for MFA is immense, given its effectiveness in preventing breaches.
EDR requires a more considered approach. It involves deploying agents to all your endpoints and often requires a security team or managed service provider to monitor and respond to alerts. While more expensive than MFA, with costs ranging from €5-€20 per endpoint per month, it's a critical investment. For a small business in, say, Sligo, with 20 employees, this could mean an investment of €100-€400 per month. However, the cost of a breach without EDR could be tens of thousands, not to mention reputational damage. The National Cyber Security Centre (NCSC) Ireland consistently highlights the importance of such proactive measures in their guidance for SMEs 1.
What to Tell Your Insurer
Once you've implemented MFA and EDR, don't keep it a secret. Proactively communicate these security enhancements to your cyber insurance provider. They need to know you've taken steps to mitigate risk. Provide documentation, such as screenshots of MFA configurations or reports from your EDR solution. This transparency can not only help secure your coverage but potentially lead to more favourable policy terms or premiums in the future. Demonstrating your commitment to cybersecurity is key to a healthy relationship with your insurer.
Regularly review your security posture and policy requirements. Cyber threats evolve, and so do insurance policies. What was sufficient last year might not be today. Stay informed, stay protected, and ensure your cyber insurance truly acts as the safety net it's intended to be. For more insights into managing your overall cyber risk, consider exploring our vCISO services or reading our glossary of cybersecurity terms.
Related Reading
- How to Set Up Multi-Factor Authentication on Microsoft 365 in 20 Minutes.
- Starkiller Phishing Kit: Why MFA Alone Is No Longer Enough for Irish Businesses
- MFA Bypass Phishing: What Irish SMEs Must Do Now to Protect Their Microsoft 365 Accounts
Ready to find out exactly where your business stands? Book a free 20-minute strategy call with our vCISO team at pragmaticsecurity.ie/book-a-call. No sales pitch. No jargon. Just clarity on your cyber risk — and a clear plan to address it.
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