Cyber insurance: Why encryption is more than just an IT issue
Cyber attacks have long been part of everyday life - whether through ransomware, phishing or targeted data leaks. The damage in Germany, Austria and Switzerland is rising continuously. Companies are increasingly confronted with a bitter realization: Cyber insurance alone is not enough. The decisive factor is whether the requirements for benefits are met in the event of an emergency - and in many cases this includes documented encryption.
Why cyber insurance at all?
According to Bitkom, around 65% of companies rated cyberattacks as a threat to their existence in 2024. 81% have already been affected - with total losses amounting to billions. Good cyber insurance can help:
- Assumption of costs in the event of business interruption and data loss
- Forensics and legal advice after an attack
- Communication with customers, partners and authorities
Small and medium-sized enterprises (SMEs) in particular are frequently the target - and often less well prepared.
Insurance cover only with proven security
What many people don't know: Insurance companies only pay out if technical and organizational protective measures have been demonstrably implemented. These include, for example
- Firewalls, virus protection, backups
- Multi-factor authentication
- Updated software & security guidelines
- Technical and organizational measures (TOMs) in accordance with GDPR and other laws
Anyone who does not meet these standards or has not documented them risks a reduction in benefits or the complete loss of the insurance in the event of a claim.
Encryption - a central component for insurability
One of the most important measures is the encryption of sensitive data. This is often required by law, especially for personal information, health data or financial information ā e.g. according to GDPR Art. 32 or industry-specific regulations such as NIS-2, DORA or Section 203 of the German Criminal Code (StGB).
It is crucial to follow the state of the art, which is specified by TeleTrusT (Federal Association for IT Security) and the European ENISA (EU Agency for Cybersecurity), among others: Client-side encryption before transfer to the cloud with full key sovereignty for the data owner is recommended. This means that the data is encrypted within the company and the cloud provider has no access to plain text data or keys at any time.
This is where eperi sEcure comes into play:
- Encryption directly before upload - cloud providers only see data garbage
- Keys remain in the company - no one else has access
- Easy integration into existing systems such as Microsoft 365 or Salesforce
- Future-proof thanks to Crypto Agility and HSM compatibility
Conclusion: If you neglect encryption, you risk losing your insurance cover
The best cyber insurance won't help if you can't provide documented security in the event of an emergency. Encryption not only protects your data - it also ensures that your insurance company actually pays out.
š Read the white paper:
How to activate your cyber insurance with encrypted data security and the right proof - and what specific obligations companies have to fulfill.
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Insure against cyber risks
Cyber attacks have long been part of everyday life - but anyone hoping for support from their cyber insurance in an emergency must now more than ever provide concrete proof of security. Encryption is no longer a "nice to have", but a prerequisite. In our white paper, you can find out what the current AVB Cyber 2024 requirements are, what insurers pay particular attention to and how you can demonstrably protect your data with eperi sEcure.
Prepare your company optimally - before a claim occurs. Download now free of charge and make an informed decision.
