Why MFA Matters for Cyber Insurance (And How to Implement It Right)

But why is MFA such a big deal for insurers? And more importantly, how can you implement it without breaking the bank or frustrating your team?

The Insurance Reality: MFA Is Non-Negotiable

Here’s what cyber insurance carriers told us about MFA requirements in 2024:

Why Carriers Care So Much

Insurance companies aren’t just being difficult. They’re responding to real data about how businesses get compromised:

Email is the #1 Attack Vector

Remote Access Abuse is Exploding

The MFA Success Story

What “Good” MFA Looks Like to Carriers

Not all MFA implementations are equal. Here’s what carriers prefer:

Implementation Guide: MFA That Actually Works

Step 1: Start with Email (Priority #1)

Step 2: Secure Remote Access (Priority #2)

Step 3: Protect Administrative Access (Priority #3)

Cloud admin accounts: Separate admin accounts with MFA required Network devices: Routers, firewalls, switches should require MFA Privileged access: Any account that can access sensitive data

Cost: Varies by platform; often just configuration time Time: 1-2 hours per system

Common Implementation Mistakes

The “CEO Exception”

“The CEO finds MFA annoying, so we disabled it for executives.”

Reality: Executives are the #1 target for business email compromise. They need MFA more than anyone.

SMS-Only Approaches

“We just send codes via text message.”

Reality: SIM swapping attacks specifically target SMS. Use authenticator apps instead.

Emergency Bypass Abuse

“We created backup methods that bypass MFA for convenience.”

Reality: Attackers will find and abuse these bypass methods. Keep emergency access truly limited.

ROI Beyond Insurance Compliance

MFA doesn’t just help with insurance - it delivers measurable business value:

• Prevents 99.9% of automated credential attacks
• Reduces support costs from compromised accounts
• Protects customer trust and avoids breach notification costs
• Enables secure remote work without VPN complexity

Getting Started Today

Week 1: Email MFA

• Enable MFA for all email accounts
• Train users on authenticator apps
• Document the process for new employees

Week 2: Remote Access

• Audit all remote access methods
• Implement MFA for VPN, cloud services
• Test with a small group before full deployment

Week 3: Administrative Access

• Identify all administrative accounts
• Implement MFA for privileged access
• Create emergency access procedures

Week 4: Insurance Shopping

• Document your MFA implementation
• Use it as a negotiating point with carriers
• Ask about specific MFA discount programs

The Bottom Line

MFA isn’t just a checkbox for cyber insurance applications. It’s the most cost-effective security control you can implement, with immediate ROI in reduced risk and often lower insurance premiums.

The question isn’t whether to implement MFA - it’s how quickly you can get it done before your next cyber insurance renewal.

Need help with implementation? Most IT support providers can set up MFA in a few hours. The cost is minimal compared to the business disruption from a successful cyber attack.

Shopping for cyber insurance? Use our state and industry guides to find carriers that recognize and reward strong security practices.