How Can Smart Vulnerability Management Slash Cyber Insurance Costs?

Are You Missing the Simple Secret to Cheaper Cyber Insurance Rates?

Your company faces real cyber threats every day. But here’s something exciting: the right vulnerability management can actually save you money on cyber insurance.

The cyber insurance world has changed. According to the 2024 Howden report, prices dropped by double digits in 2023 and early 2024. This is different from the expensive increases we saw after big cyberattacks in previous years.

Why are prices going down? Companies are getting better at cybersecurity. When you show insurers that you actively find and fix security holes, they see you as less risky. This means lower costs for you.

What Is Vulnerability Management?

Think of vulnerability management as your security health check. It’s a simple system that finds, checks, fixes, and reports security problems across all your digital tools – websites, apps, networks, and cloud systems.

Here’s what it includes:

• Automated and manual scans that find both known and new security holes
• Risk scoring based on how easy problems are to exploit and how important your systems are
• Quick fixes through patches or protective controls
• Ongoing checks to catch new problems as they appear

How Vulnerability Management Affects Your Cyber Insurance

Insurance companies look at your vulnerability management throughout your policy journey. Here’s how it impacts each stage:

Getting Approved: Showing You’re Ready

When you apply for cyber insurance, underwriters want to know your risk level. They ask questions like:

• Do you scan for security problems regularly?
• How fast do you fix critical issues?
• Do you use automated tools or only manual checks?
• Can you show reports from past scans?

Companies with good vulnerability management get:

• Lower monthly costs
• Faster approval
• Better coverage options

Why this matters: Insurers prefer companies that prevent problems instead of just reacting to them. When you regularly scan and fix issues based on actual risk (not just severity scores), you show a proactive approach.

Annual or twice-yearly penetration testing adds extra value. These tests find business logic problems, zero-day risks, and chained vulnerabilities that automated tools might miss.

Setting Your Price: Security Habits Matter

Your vulnerability management directly affects what you pay. If your environment shows:

• Long times to fix problems
• Many known vulnerabilities piling up
• No continuous monitoring

…you’re seen as high-risk.

Good practices pay off: Fast remediation following clear timelines shows you’re in control. Some companies use virtual patching for old systems or when patches are delayed to reduce exposure.

Claims Review: Proving You Did Your Best

Strong vulnerability management helps during claims, but insurers also look for proof that you took reasonable steps to stay secure. It’s not just about what went wrong – it’s about how well you managed your environment before problems happened.

Renewals and Audits: Ongoing Evaluation

Cyber insurance isn’t a one-time check anymore. Many insurers do regular audits, especially before renewals. Changes in your vulnerability management – like growing backlogs or critical vulnerabilities left open – may cause:

• Higher costs
• Reduced coverage limits
• Policy cancellation in serious cases

This reinforces the need for consistent vulnerability management, not just quick fixes during policy applications.

Tip: Use continuous scanning solutions that allow on-demand scans, track across multiple cloud or hybrid environments, and provide detailed reporting to build long-term insurer trust.

What Insurers Want in Your Vulnerability Management Program

Here’s a simple checklist of what cyber insurers expect:

Area	What Insurers Want
Scanning Frequency	Regular (weekly or continuous)
Coverage Scope	Web and Mobile Apps, APIs
Fix Timelines	Quick resolution based on vulnerability severity and risk
Risk-Based Priority	Based on how easy to exploit and asset value
Historical Reports	Audit-ready logs for previous scans
Threat Intelligence	Dynamic responses to changing risks
Vulnerability Patching	Timely patching of vulnerabilities
Alternative Controls	Especially for zero-days or legacy systems

Building Cyber Resilience Beyond Insurance

Cyber insurance is part of a bigger protection strategy. Strong vulnerability management doesn’t just improve your insurability – it:

• Reduces actual incident risk
• Protects customer trust
• Improves your ability to respond and recover from breaches

By combining AI-powered scanning, real-time fixes, and audit-ready reporting, organizations show the maturity and transparency insurers increasingly demand.

The bottom line: Good security practices lead to better insurance rates. When you boost your security posture through proper vulnerability management, you naturally lower your cyber insurance costs.

Take action today: Start with a comprehensive vulnerability scan, establish clear fix timelines, and document everything. Your future insurance premiums will thank you.

This enhanced approach to vulnerability management creates a win-win situation: better security for your business and lower insurance costs for your budget.