The terms active cyber insurance and traditional cyber insurance are sometimes used to distinguish between policies that include ongoing cyber risk services and policies that primarily provide insurance cover.

They are not universal insurance industry definitions, so the actual policy and services provided are more important than the label.

Traditional Cyber Insurance #

A traditional Cyber Insurance policy generally involves the insurer assessing the business when cover is applied for or renewed.

Underwriting information can include:

• Business activities
• Revenue
• Data held
• IT environment
• Security controls
• Claims history
• Previous cyber incidents

Once the policy is issued, the insurance remains subject to the agreed terms, conditions and obligations. This does not necessarily mean the insurer has no interaction with the business during the policy period.

Active Cyber Insurance #

Some cyber insurers combine insurance with ongoing cyber risk management services.

Depending on the insurer, these can include:

• External vulnerability scanning
• Security alerts
• Threat intelligence
• Risk dashboards
• Security recommendations
• Monitoring of internet-facing systems
• Access to cyber risk management tools

The scope of these services varies considerably.

Insurer-provided monitoring or scanning should not be treated as a replacement for internal cybersecurity controls or professional IT support. The business remains responsible for maintaining its systems and security controls.

Monitoring findings also do not necessarily change the policy automatically. The effect on cover, underwriting or renewal depends on the insurer and policy arrangements, and businesses should not assume pricing or coverage automatically changes during the policy period simply because an insurer provides monitoring tools.

Contact our team if you would like help comparing Cyber Insurance options that include proactive cyber risk services.