Insure and Grow: Cyber Insurance Strategies for MSPs — 2025 Edition

Cyber insurance is more attainable (and strategically useful) for MSPs in 2025 than it was a year ago. Rates have eased across many markets, but underwriting scrutiny remains high—and threat activity hasn’t slowed. Use the softening market to secure stronger coverage for yourself and your clients while building a repeatable growth motion. Global commercial insurance rates fell 4% in Q2 2025 (cyber down ~3% on average), even as claims and losses continue to demand robust controls. MarshBusiness Insurance

1) 2025 pricing at a glance (what to expect at renewal)

• Rates: Marsh’s Q2 2025 Global Insurance Market Index shows commercial rates down 4% globally, with cyber down about 3%—the ninth straight quarterly reduction. The US composite rate was flat overall, but cyber still trended down. Expect variation by sector and loss history. MarshBusiness Insurance

• Why softer? More competition and improved loss trends versus 2021–2023. (That said, individual sectors hit by large incidents may see counter-trends.) Marsh

• Reality check on risk: The FBI logged $16.6B in reported cybercrime losses for 2024 (+33% YoY). Verizon’s 2025 DBIR notes ransomware involved in about 44% of breaches, with vulnerability exploitation continuing to rise. Translation: premiums may be down, but control expectations aren’t. Internet Crime Complaint CenterFederal Bureau of InvestigationVerizonits.ny.gov

2) Underwriting in 2025: what changed (and what didn’t)

Underwriters still require core controls, but they’re verifying them more rigorously and supplementing questionnaires with external risk ratings / scan data. Carriers are also bundling risk services (continuous monitoring, guidance) into policies. Marshinvestor.travelers.com

Expect carriers (and brokers) to lean on frameworks like NIST CSF 2.0 and CISA’s Cross-Sector Cybersecurity Performance Goals (CPGs) as “what good looks like” for SMBs and mid-market: MFA everywhere feasible, EDR/MDR, secure/immutable backups, vulnerability and patch SLAs, logging/monitoring, and incident response planning. NISTNIST PublicationsCISA+1

Examples of the shift toward prevention + services:

• Travelers Cyber Risk Services (2025): always-on threat monitoring, tailored alerts, and guidance included with cyber policies. investor.travelers.com

• At-Bay / “InsurSec” model: combined insurance + security (e.g., MDR, hardening help) to actively reduce loss. At-Baypremium.insurancebusinessmag.com

3) MSP-ready application checklist (for you and your clients)

Have clear, evidence-backed answers to these items before you apply or renew:

Identity & access

• MFA enforced for admins, remote access, email, VPN, privileged actions; SSO where possible.

• Privileged access management (least privilege, admin separation, break-glass).
  Endpoints & email

• EDR/MDR deployed on servers/workstations; email security with phishing protection and DMARC.
  Backups & recovery

• Immutable/offline backups, tested restores, RPO/RTO documented.
  Vuln & patch

• Defined patch SLAs; critical vulns addressed promptly; external attack surface scanning.
  Monitoring & response

• Centralized logging, alerting, and an IR plan with tested playbooks.
  Third parties

• Vendor risk management, especially for remote tools and PSA/RMM.

These align with CISA CPGs and what you’ll see reflected in modern insurer apps and broker self-assessments. Pull the actual forms early (e.g., Travelers CyberRisk applications) to confirm wording. CISA+1Travelers

4) Pricing & coverage levers MSPs can control

• Control maturity drops friction (and price): Strong MFA/EDR/backup posture + clean scans = better eligibility, fewer exclusions, and often better deductibles/limits. (Marsh notes improving loss trends and competition are unlocking broader terms.) Marsh

• Use the market: With cyber rates easing on average, ask your broker about limit increases, lower retentions, and social-engineering/BI sublimits. (Results will vary by class and claims.) Business Insurance

• Keep risk context current: DBIR and IC3 show threat activity and losses remain high; expect carriers to keep control bars high despite price relief. VerizonInternet Crime Complaint Center

5) MSP growth playbook: make insurance a revenue engine

1. Bundle coverage into QBRs: Add a “Cyber Insurability” slide—status against CPG-aligned controls, open gaps, and the insurance impact (eligibility, deductibles, limits). CISA

2. Pre-qualify with a mini-assessment: Mirror NIST CSF 2.0 functions (now including Govern) and translate findings into an insurance-readiness work plan. NIST

3. Offer a one-click path to quotes: If you use ConnectWise, route qualified clients through SeedPod Cyber’s Marketplace integration to generate quotes quickly while you drive the control remediation plan.

4. Productize remediation: Fixed-fee add-ons for MFA expansion, EDR rollout, backup hardening, and IR tabletop—priced so clients see clear ROI in premium/terms.

5. Close the loop: After binding, schedule a 90-day post-bind controls review and update security evidence so next renewal’s a breeze.

6) Talking points you can reuse with clients (2025 stats)

• “Cyber crime losses hit $16.6B in 2024, up 33%—so underwriters still need proof you’re hard to breach.” Internet Crime Complaint CenterFederal Bureau of Investigation

• “In Verizon’s 2025 DBIR, ransomware shows up in about 44% of breaches; patching exposed edge devices and tightening identity are must-dos.” Verizonits.ny.gov

• “Market conditions are friendlier: Marsh reports Q2 2025 cyber rates down on average, so this is a good year to improve terms and limits if your controls are tight.” Business Insurance

7) What to prepare before you click “Get Quote”

• A signed IR plan and last tabletop summary

• MFA and EDR deployment reports (screenshots + device counts)

• Backup diagrams and recent restore logs

• Patch/vuln reports (critical items addressed)

• User security training completion records

• Admin inventory and PAM approach

• Third-party access list and controls

Final note for 2025

Rates may be easing, but carriers are doubling down on validation and continuous risk insight. If your stack aligns with CPGs and NIST CSF 2.0, you’ll not only qualify—you’ll differentiate and grow.  Contact us at https://seedpodcyber.com/contact-us/ for a free quote today!