By Jack Kufahl, CISO, Michigan Medicine
Chief Information Security Officers (CISOs) are no longer just guardians of firewalls and passwords—they’re strategic partners in risk management, navigating a complex web of cyber threats, operational demands, and financial realities. One of the most dynamic conversations in this space? The evolving role of cyber insurance.
As healthcare information security leaders, it is common for us to find ourselves in conversations and decisions with other business leaders on how to balance practical information security technologies, services, and staff with the institutional insurance premiums. This conversation has changed significantly over the past ten years and runs the full spectrum of opinions and challenges.
A decade ago, cyber insurance was often treated as a checkbox—an afterthought to more tangible security investments. But today, it’s a critical piece of the cybersecurity puzzle. From safeguarding sensitive patient data to ensuring the uptime of life-saving medical devices, CISOs are increasingly expected to weigh the value of insurance not just as a fallback, but as a proactive tool in their arsenal.
By aligning your security program with business objectives, regulatory demands, and evolving threats, you can transform insurance from a financial safeguard into a strategic asset.
The New Dialogue: Risk, Resilience, and ROI
Cyber threats have grown more sophisticated, and so have the conversations around them. Discussions about digital risk are no longer confined to IT departments, and now they span boardrooms and C-suites. CISOs must bridge the gap between technical defenses and financial strategy, aligning cybersecurity investments with insurance coverage to maximize both protection and value.
But here’s the catch: cyber insurance isn’t a silver bullet. It’s not a substitute for strong defenses—it’s a complement. Think of it as a safety net woven into a broader strategy that includes prevention, detection, response, and recovery.
Understanding your current state
Before you can integrate cyber insurance effectively, you need a clear picture of your organization’s risk landscape. That starts with a comprehensive risk assessment. What are your most critical assets? Where are your vulnerabilities? What would a worst-case scenario look like?
For example, a hospital heavily reliant on interconnected medical devices might need coverage tailored to IoT threats. Once risks are prioritized, a gap analysis can highlight where your defenses fall short—whether it’s outdated encryption, weak endpoint protection, or insufficient incident response planning.
Insurance providers often assess the organization’s cybersecurity posture during underwriting, and organizations with strong defenses may qualify for lower premiums.
And remember, insurers are watching. A strong cybersecurity posture can lead to lower premiums, but only if you can demonstrate it. That means having not just policies and controls in place, but evidence of their effectiveness—regular testing, audits, and continuous improvement. Demonstrating that you have a regime of regular practice, review, and revision helps the credibility of your security program and investments while keeping the conversation elevated strategically.
Storytelling as Strategy
Choosing the right policy isn’t just about reading the fine print; it’s about telling the right story at the right time. CISOs rarely make these decisions alone, so guiding internal stakeholders through practical, scenario-based discussions is crucial.
Use tabletop exercises to map out the entire lifecycle of a cyber incident—from detection to recovery—and identify where insurance could make a difference. Highlight both proactive services (like regulatory briefings or penetration testing) and reactive ones (like ransomware negotiation or forensic analysis). This approach not only clarifies the value of coverage but also fosters alignment across leadership.
And don’t let this be a one-time conversation. Make it a recurring dialogue—a strategic ritual that keeps digital risk on the executive radar and moves the conversation beyond fear-driven reactions to thoughtful, long-term planning.
Measuring What Matters: Value on Investment
Cyber insurance is often judged by its cost, but its true value lies in what it protects—and enables. Yes, it offers financial coverage for breaches, fines, and downtime. But it also provides something less tangible yet equally vital: confidence.
By modeling potential losses and comparing them to policy benefits, CISOs can quantify the return on investment (ROI). But they should also look beyond the numbers. How does the policy support resilience? How does it enhance your ability to recover quickly and maintain trust?
Too often, security teams are measured solely by their ability to prevent incidents. But in today’s threat landscape, resilience is just as important. Cyber insurance can help shift that narrative—positioning the CISO not just as a defender, but as a recovery leader.
The Untapped Advantage: Strategic Insight
Here’s a secret weapon many CISOs overlook: their insurers. These companies have a bird’s-eye view of the threat landscape, informed by data from across industries and geographies. Their insights can help shape your strategy, benchmark your performance, and even refine how you communicate risk to the board.
Few CISOs have the benefit of experience across multiple healthcare systems. Insurers do. Tap into that knowledge. Use it to elevate your voice, align with business goals, and speak the language of risk—not just technology.
From Policyholders to Partners
Ultimately, cyber insurance shouldn’t be a passive purchase. It should be a dynamic partnership that supports your mission, strengthens your defenses, and reinforces your role as a strategic leader.
By aligning your security program with business objectives, regulatory demands, and evolving threats, you can transform insurance from a financial safeguard into a strategic asset. In doing so, you’ll not only protect your organization, but also empower it to thrive in a digital world.
