The Importance of Cybersecurity and Data Privacy

Cybercrime will only increase and will affect anyone who is not properly prepared. 

Partners will need to focus on the basics and not on the latest and greatest software that will supposedly fix all problems.

“No big surprise here, but we will have, more than ever before, ransomware attacks. People won’t apply security updates in a timely way or follow best practices. To use someone else’s words, ‘No one is too small to be hacked; they are just too small to make the local news.’ As a result, we will see higher premiums in cybersecurity insurance. I do believe that more companies will begin to see the need to implement and up their game to put protection in place (however, sadly too late for many).”  —René Miller, CEO, Ener Systems

“Cybersecurity will see a bump in importance for all MSP customers, not just those in regulated or compliance-driven industries, because of…  cybersecurity insurance.  Cybersecurity applications are getting tougher to fill out, and claims are not necessarily being paid if reality does not match what is on the application. Everyone with a cybersecurity policy will see rate increases and more stringent qualifications, meaning cybersecurity will matter to almost all businesses than it has in the past. Smaller MSPs will face a decision with an increased need to carry a full cybersecurity practice, partner, or outsource themselves, with some deciding to get off the merry-go-round.” —Val King, CEO, Whitehat Virtual

“Cybersecurity, cybersecurity, cybersecurity. Nothing is a bigger threat to shutting down a business’ day-to-day operation and just gets worse everyday. Annual vulnerability assessments will also be a must (most insurance policies starting to require). And lastly, MDR and cybersecurity staff training/phishing simulation will be two of the most important next-gen components.” —Scott Hagizadegan, CEO, Shield IT Networks

“Security will be an even bigger concern than in 2022. With the market softening, crime will go on the rise, resulting in a significant increase in security needs. Sadly, companies that do not address security properly will likely not be around this time next year. I believe the media will oversensationalize the impact, resulting in those MSPs that are ready for the influx of business to enable much higher profits.” —Joe Ussia​, CEO, Infinite IT Solutions

“Here’s what we’re seeing in our client base and in the industry in terms of security and privacy:

• Continued increase of importance of cybersecurity and privacy of data. I expect to see an increase in the prevalence of privacy regulations across states and industries that will require organizations to spend time, effort, and money on strategies to secure and protect data.

• Data governance: We’ll see more privacy and data-related security policies like the FTC Safeguards Rule; more businesses that are adjacent to traditionally regulated industries will be impacted by these requirements

• Opportunities for security improvement for state and local government entities with the FEMA State and Local Cybersecurity Grant Program. There will be heavy spending in these areas, and the focus will likely be on closing the gap where possible on the worst outliers for cybersecurity.

• Cyber liability insurance will continue to be more scrutinizing of business hygiene, and you’ll start to see alliances between brokers/underwriters and MSSPs/MDR/XDR platforms being formed and strengthened. I expect to see an increase in “proof” of hygiene for the best rates; think ‘safe driver discount’ where you install a sensor in your car that shows data to ‘prove’ you aren’t driving recklessly.”—David Markley, president, Stronghold Data