Why Smart Companies Are Choosing Cyber Insurance Partners, Not Just Policies

For decades, insurance has followed a familiar formula: pay a premium, transfer the risk, and hope you never have to file a claim. Cybersecurity insurance followed that model too — at first.

But today, the game is changing. In a world where ransomware gangs operate like professional startups and threat actors can bypass legacy defenses in minutes, cyber insurance is evolving from a passive safety net to an active partner in resilience.

The idea that insurance is only about cutting a check after a breach is already outdated. Welcome to the era of cyber risk partnership.

From Payouts to Prevention: Why the Shift Is Happening

Cyber losses are skyrocketing. According to AM Best, insurers saw cyber loss ratios rise dramatically between 2020 and 2022, with some carriers paying out more in claims than they collected in premiums. Ransomware payouts, business interruption costs, regulatory fines — the risks were bigger, faster, and more expensive than traditional models had planned for.

Rather than continue raising premiums endlessly (a strategy that backfired and drove customers away), insurers began to realize:

They needed to help clients prevent losses in the first place.

The shift mirrors how auto insurers once moved from just writing checks after accidents to offering driver monitoring apps, discounts for safe driving, and vehicle anti-theft devices. In cyber insurance, this means moving beyond risk transfer into risk management and reduction — before the incident happens.

Real-World Example: Coalition’s Active Insurance Model

One of the most high-profile pioneers of this approach is Coalition, a cyber insurance provider launched in 2017.

Coalition didn’t just sell policies — they bundled them with real-time monitoring, threat intelligence, and incident response services. Their platform continuously scans clients’ public-facing infrastructure, alerts them to vulnerabilities, and offers immediate remediation help.

If Coalition’s tools detect that a client’s RDP (Remote Desktop Protocol) port is exposed — a favorite ransomware entry point — they don’t just send a warning. They often reach out directly, escalating until the risk is fixed.

The result: clients suffer fewer breaches, and when attacks happen, they are contained faster and cost less.

This “active insurance” model is now being adopted across the industry.

The New Requirements: More Than Just a Paper Policy

The partnership model is reshaping the buying process itself. Companies seeking cyber insurance today increasingly find that they must:

• Demonstrate baseline security controls: Multi-Factor Authentication (MFA), Endpoint Detection and Response (EDR), regular vulnerability scanning, and backup validation are often prerequisites just to qualify for a policy.

• Allow for ongoing security assessments: Some insurers now reserve the right to periodically scan client environments, or require proof of compliance with security protocols during the policy term.

• Engage with insurer-provided tools: Access to threat feeds, employee phishing simulations, patch management support, and even 24/7 security hotlines are becoming standard parts of major cyber policies.

This is a far cry from the early days when filling out a one-page questionnaire was enough to secure coverage.

Today, insurers want data-driven visibility into your cybersecurity health — and some offer discounts or policy enhancements if you exceed minimum requirements.

Real-World Example: Resilience Cyber Insurance Solutions

Resilience, another cyber insurance provider, goes even further.

They bundle insurance with a formal “cyber risk management platform” — offering client-specific recommendations, dynamic risk scoring, and access to experts to guide improvements.

Their message is clear:

“We’re not just insuring you. We’re working with you to lower your risk, every day.”

This model reflects a new mindset: insurers aren’t just betting on your ability to survive an attack. They are invested in helping you avoid it altogether.

The Role of AI and Real-Time Data

Driving much of this transformation is the explosion of real-time data and AI-driven analytics.

Instead of relying solely on annual questionnaires and assumptions, insurers can now:

• Continuously assess an organization’s external attack surface

• Use machine learning to predict breach likelihood based on security posture, industry sector, and third-party risk

• Offer dynamic pricing models that adjust based on improving (or worsening) security maturity

Companies like At-Bay and Cowbell Cyber are pushing this trend even further.

At-Bay integrates continuous risk monitoring into its underwriting, and if a client remediates critical vulnerabilities identified by At-Bay’s scans, they can sometimes immediately qualify for premium reductions.

Cowbell Cyber uses proprietary AI models to generate “Cowbell Factors” — dynamic cyber risk scores that evolve in real-time — shaping policy terms and pricing.

Cyber insurance is becoming a living, breathing part of enterprise risk management, not just an afterthought.

What Businesses Should Do Now

To thrive in this new environment — and to get the best coverage terms — businesses must stop viewing cyber insurance as a standalone purchase and start treating it as a long-term relationship.

Here’s how:

• Invest in Core Controls: MFA, EDR, regular vulnerability scans, encrypted backups, Zero Trust architecture — these aren’t optional anymore; they’re table stakes.

• Be Open to Collaboration: Engage with insurer-provided tools and advisory services. Treat insurance as a cybersecurity co-pilot, not a referee.

• Prioritize Visibility and Documentation: Maintain clear, current records of your cybersecurity program, incident response plans, and governance processes. Insurers increasingly reward transparency and maturity.

• Ask Insurers About Their Support Services: Don’t just ask, “What’s the premium?” Ask, “What resources will you offer to help me prevent a breach?”

The Bottom Line

The future of cybersecurity insurance is not about writing bigger checks after catastrophic losses.

It’s about building resilient businesses that are harder to breach in the first place — through active collaboration, better data, smarter underwriting, and a shared commitment to reducing risk.

In an era where cyber threats move faster than ever, the companies that succeed won’t just be the ones with the best defenses.

They’ll be the ones with the best partners — including their insurers.