Why Your Cyber Insurance Premium is Skyrocketing (And How to Lower It in 2026)

Is your business actually insurable right now?

If you have renewed your business insurance recently, you likely noticed two things: the price has gone up, and the questionnaire is much longer.

In 2026, the "Wild West" days of cyber insurance are over. Providers are no longer handing out policies to just anyone. They are demanding proof—rigorous, documented proof—that you are taking security seriously before they agree to cover you.

If you cannot tick the right boxes, you face either massive premiums or, worse, being declined for coverage entirely.

The "Big Three" Demands Insurers Are Making Now

Insurers have stopped asking "Do you have antivirus?" and started asking specific, technical questions. If you answer "No" to any of these, your policy is at risk.

1. Enforced Multi-Factor Authentication (MFA) It is no longer optional. Insurers now require MFA not just for email, but for remote network access (VPNs) and admin accounts.

• The Trap: If you claim you have MFA, but one senior partner has it turned off "because it’s annoying," and you get hacked via that account, your insurer can legally refuse to pay the claim.

2. Segregated Backups Insurers know that ransomware targets your backups first. They now require "immutable" or "air-gapped" backups—data that cannot be deleted or encrypted even if a hacker gains full admin access.

3. Regular Staff Awareness Training Human error causes 80% of breaches. Insurers want to see proof that you are actively testing your staff with simulated phishing attacks (not just once a year, but continually).

The "Cyber Essentials" Shortcut

This is the cheat code for UK businesses.

Most UK insurers align their questionnaires directly with the government-backed Cyber Essentials standard.

• If you have the accreditation: You act as a "low-risk" client. Many insurers automatically offer lower premiums to Cyber Essentials certified businesses.

• If you don't: You are seen as "high-risk," and you will pay for it.

How Pilot IQ Fixes This

We don't sell insurance, but we make sure you get the best deal on it.

We act as the bridge between your business and your broker. We implement the specific technical controls (like enforced MFA and immutable backups) that insurers demand.

More importantly, we can guide you through the Cyber Essentials certification process, often spotting and fixing "fail" points before the auditor ever sees them.

Don't wait for your renewal letter to panic. Book a Pre-Insurance Audit with us today, and let’s make sure you are covered, compliant, and saving money.