Lowering Insurance Premiums With MFA

Date: 2021-06-24
Author: Carolina Martinez, General Manager Americas

Lowering Insurance Premiums With MFA

Our team here at Versasec is immersed in the benefits of multi-factor authentication (MFA) 24x7x365, but here’s one advantage you might not know about: many insurance companies provide discounts for businesses that employ MFA.

As we all know, MFA is crucial for cybersecurity – the recent Colonial Pipeline ransomware attack in the U.S. is just the most recent, and very public, example. Incidents like this have led insurers to either charge higher rates for customers not using MFA or offering discounts to those that do. Most insurers now list MFA as a best practice for cybersecurity – particularly for activities in the cloud such as data backup (a solution that would have helped in the Colonial Pipeline case).

Many of you may not be aware of MFA-related discounts or have yet to talk with your agent to learn more. If you have not done so, reach out to your agent. You may find out that beyond the discount opportunities, companies not on the MFA bandwagon may find themselves unable to renew their policies at the end of the contract term.

So, while the discount for employing MFA may not be substantial, there also are other considerations – such as the ability to shop around more easily for insurance when you know your company has created security policies that are either required or desired by insurers. Then there are the pure benefits of MFA, with or without an insurance discount. MFA will lower the risk of breaches, which may result in fewer claims against the insurance, which in turn can result in lower premiums. When MFA is in place and breaches are thwarted, no one hears about it. It’s just quietly sitting in the background protecting the company’s reputation and that’s worth a lot.

But perhaps the greatest benefit of all is that with MFA companies can enable their employees to work remotely, and safely conduct even sensitive operations — all in the spirit of Work from Home/Work from Anywhere.

If you’re enacting MFA in your organization and need help, click here and then click on the “Chat” button. We’d be happy to help.

Photo by Bruce Mars from Unsplash.


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