With one in three cyber-attacks now involving compromised employee accounts, insurers and regulators are placing far greater emphasis on identity posture when assessing cyber risk.
For many organizations, however, these assessments remain largely opaque. Elements such as password hygiene, privileged access management, and the extent of multi-factor authentication (MFA) coverage are increasingly influential in how cyber risk and insurance costs are evaluated.
Understanding the identity-centric factors behind these assessments is critical for organizations seeking to demonstrate lower risk exposure and secure more favorable insurance terms.
Why identity posture now drives underwriting
With the global average cost of a data breach reaching $4.4 million in 2025, more organizations are turning to cyber insurance to manage financial exposure. In the UK, coverage has increased from 37% in 2023 to 45% in 2025, but rising claims volumes are prompting insurers to tighten underwriting requirements.
Credential compromise remains one of the most reliable ways for attackers to gain access, escalate privileges, and…
