How to Reduce Your Cyber Insurance Premium Without Reducing Your Coverage.

Did you know that implementing robust cybersecurity measures can directly translate into significant savings on your cyber insurance premiums?

Cyber insurance has become a critical safeguard for Irish businesses, offering a financial safety net against the escalating costs of cyberattacks. However, premiums are rising, driven by the increasing frequency and sophistication of threats. Many businesses mistakenly believe that reducing coverage is the only way to cut costs, but this leaves them dangerously exposed. The truth is, insurers are increasingly rewarding proactive cybersecurity. By demonstrating a strong commitment to security, you can not only reduce your risk but also your annual outlay.

The Rising Tide of Cyber Threats in Ireland

The digital landscape in Ireland is constantly evolving, and with it, the threats faced by businesses. An Garda Síochána reported a 137% increase in fraud and economic crimes in the past year, highlighting the urgent need for robust cyber defences. [1] This surge in cybercrime directly impacts insurance providers, who adjust premiums to reflect the heightened risk. Businesses in counties like Donegal and Sligo, often with smaller IT teams, can be particularly vulnerable if they lack adequate protection. Understanding this risk is the first step towards mitigating it and, consequently, lowering your insurance costs.

Multi-Factor Authentication (MFA): Your First Line of Defence

Multi-Factor Authentication (MFA) adds a crucial layer of security beyond just a password. It requires users to provide two or more verification factors to gain access to an account. This could be a password combined with a code from a mobile app, a fingerprint, or a physical security key. Insurers view MFA as a fundamental control because it drastically reduces the risk of account takeover, a common entry point for cybercriminals. Implementing MFA across all critical systems can lead to premium reductions of up to 20%. To document this for your insurer, provide evidence of MFA enforcement policies, audit logs showing MFA usage, and details of the MFA solutions deployed.

Endpoint Detection and Response (EDR): Catching Threats Early

Endpoint Detection and Response (EDR) solutions continuously monitor end-user devices like laptops, desktops, and servers for suspicious activity. Unlike traditional antivirus, EDR doesn't just block known threats; it detects, investigates, and responds to advanced threats that might bypass initial defences. This proactive approach allows businesses to identify and contain breaches much faster, minimizing damage and associated costs. Insurers recognise the value of EDR in reducing the impact of an incident, offering potential premium savings of up to 15%. When presenting to your insurer, be ready to share EDR deployment reports, incident response playbooks, and evidence of regular threat hunting activities.

Regular Patching: Closing the Vulnerability Gaps

Software vulnerabilities are a constant target for cybercriminals. Regular patching involves applying updates and fixes to software and operating systems to close these security gaps. Unpatched systems are like open windows in your house, inviting intruders. The National Cyber Security Centre (NCSC) Ireland consistently advises organisations to maintain a rigorous patching schedule as a core security practice. [2] By keeping all systems up-to-date, you significantly reduce your attack surface. This commitment to vulnerability management can result in premium reductions of up to 10%. Provide your insurer with patch management policies, vulnerability scan reports, and logs demonstrating timely application of updates.

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Tested Backups: Your Ransomware Recovery Plan

Ransomware remains one of the most devastating cyber threats, capable of crippling businesses by encrypting critical data. Having robust, regularly tested backups is not just good practice; it's your ultimate defence against data loss and extortion. Insurers want to see that you can recover quickly and effectively from a ransomware attack without paying the ransom. This means having immutable backups stored off-site and a clear recovery plan that is periodically tested. Demonstrating a comprehensive backup and recovery strategy can reduce your premiums by up to 10%. Insurers will typically ask for backup policies, recovery test reports, and details of your backup solution and storage.

Staff Training: The Human Firewall

Your employees are often the weakest link in your cybersecurity chain, but they can also be your strongest defence. Security awareness training educates staff about common threats like phishing, social engineering, and malware, empowering them to identify and report suspicious activity. A well-trained workforce acts as a human firewall, significantly reducing the likelihood of successful attacks. Many cyber incidents in Ireland originate from human error, making effective training a crucial investment. [3] Insurers acknowledge the power of a security-aware culture, offering up to a 5% reduction in premiums. Provide evidence of your training program, completion rates, and simulated phishing campaign results.

Documenting Your Controls for Insurers

To successfully negotiate lower premiums, simply having these controls in place isn't enough; you need to prove it. Insurers require clear, verifiable documentation. This includes written policies and procedures for each control, audit logs demonstrating their implementation, and reports from security tools. For example, when discussing your EDR solution, be prepared to show incident reports and threat detection statistics. For backups, provide evidence of successful recovery tests. A well-organised portfolio of your cybersecurity posture will not only impress your insurer but also streamline the application and renewal process. Consider engaging a vCISO to help you compile this evidence and articulate your security story effectively.

Related Reading

• Cyber Insurance for Donegal and Sligo SMEs: What Local Businesses Need to Know.
• The Cyber Insurance Gap: Why Most Irish SMEs Are Underinsured and Don't Know It.
• First-Party vs Third-Party Cyber Insurance: What Every Irish SME Director Needs to Understand.

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.

References

[1] An Garda Síochána. (2026, February 23). An Garda Siochana's provisional crime statistics for last year reveal fraud and economic crimes were up 137 per cent compared with 2024 Full .... Facebook. https://www.facebook.com/irishmirror/posts/an-garda-siochanas-provisional-crime-statistics-for-last-year-reveal-fraud-and-e/1344154087740606/ [2] NCSC Ireland. (n.d.). Guidance Documents. https://www.ncsc.gov.ie/guidance/ [3] Pragmatic Security. (2025, December 30). Beat the Premium Spikes: Cyber Insurance Renewal Strategy. https://pragmaticsecurity.ie/UpdateCyberInsurance