Identity & Access Management as a Core Building Block of cyber insurance: multi-factor authentication

Identity & Access Management as a Core Building Block of cyber insurance: multi-factor-authentication

In our blog series Identity & Access Management (IAM) as a core building block of cyber insurance, we take a look at how businesses can use an IAM to implement the requirements of cyber insurance and thus also increase security in the business.

In our first blog of the series, we look at multi-factor-authentication as one of the most frequently mentioned requirements for cyber insurances.

Multi-factor-authentication and why cyber insurers demand it!

Brief introduction: multi-factor-authentication (MFA) uses at least two different factors from the categories of knowledge, possession, and inherence to enable strong user authentication. There are a variety of different authentication methods, from familiar methods such as passwords or confirmation codes via SMS / e-mail to authenticator apps and biometric authentication, for example, via a face scan. It is recommended to combine authentication methods from different categories in order to increase security, e.g., a password and a security question are not a good combination since both factors belong to the area of knowledge. Various methods are also classified as more convenient and secure than others, for example, authentication via biometrics, e.g. integrated device biometrics such as FaceID or TouchID, are more secure than a password.

Why is MFA such a big deal when it comes to cyber insurance? Well, insurance companies are all about risk management. Multi-factor authentication ensures secure authentication and thus reduces the risk of a user account being compromised, which is one of the biggest gateways for cyber-attacks. The most common cause of a compromised user account is the misuse of credentials, in particular the password, which is obtained via phishing, for example. Insurance companies therefore prescribe the use of multi-factor-authentication, at least for certain areas or user groups, in order to reduce this attack vector and thus the risk.

Multi-factor-authentication as part of Identity & Access Management

Businesses should not only rely on multi-factor-authentication because of the requirements of cyber insurance, but also to protect business assets such as sensitive data. Multi-factor-authentication should be used as part of Identity & Access Management, along with other features, to enhance overall IT security. It is important that a wide variety of authentication methods are available to cover a broad range of use cases.

Multi-factor-authentication can not only be used as a mandatory requirement for access to certain applications, but also based on risk – as SMART MFA. In the case of a SMART MFA, multi-factor-authentication is added contextually, e.g. in the event of suspicious behavior or when access to important functions where increased security is required.

With this intelligent usage, multi-factor-authentication can also be used easily and without major restrictions for all user groups and not only for a specific user group, such as administrators, as is often required by cyber insurance companies. With a SMART MFA, user comfort and security can be easily reconciled since the individual risk of access is checked and addressed accordingly.

As the leading European Cloud Identity & Access Management platform, cidaas offers a fully integrated and feature-complete platform that also offers a variety of different authentication methods for multi-factor authentication and SMART MFA.

The most important facts about multi-factor authentication for cyber insurance in brief:

  • Multi-factor authentication is one of the most frequently requested requirements in cyber insurance policies
  • Multi-factor authentication increases security and can prevent user accounts from being compromised
  • Multi-factor authentication should be implemented enterprise-wide best as SMART MFA
  • Multi-factor authentication is part of Identity & Access Management

On our landing page – Identity & Access Management for Cyber Insurances – you can learn more about how cidaas can help with the implementation of cyber insurance requirements.

Read also the other parts of our Blog series “Identity & Access Management as a core building block of cyber insurance”: