Viewpoint: Loss Control Services Are Underused Tools to Reduce Identity Security Risk

Cyber insurers are offering tools that could significantly reduce your identity risk—but most organizations aren’t using them.

One of the most significant advancements in the sector is the increased emphasis on loss control services. These services are designed to mitigate risk, enhance cybersecurity postures, and ultimately reduce the frequency and severity of cyber-related claims. Many of them are free of charge or discounted as carriers and brokers have negotiated prices with many different vendors.

What are loss control services?

Loss control services in the cyber insurance space refer to proactive risk management strategies insurers provide to policyholders—often at no cost or a reduced rate. These services are typically offered annually upon policy renewal and give organizations access to expert guidance and tools that support stronger cyber hygiene and risk posture.

Loss control services include:

• Security assessments: Identifying security risk exposures in an organization’s cybersecurity framework. These assessments typically evaluate network architecture, endpoint protections, patching practices, and policy enforcement to find security blind spots.
• Identity risk assessments: Evaluating identity-related exposures that increase the likelihood of a cyber incident. These assessments help uncover gaps in security controls enforcement, including multifactor authentication (MFA), security of non-human identities (NHIs)s, including on-prem service accounts, and privileged access—key factors in mitigating credential-based attacks and lateral movement.
• Employee training: Educating staff on best practices to prevent cyber breaches. Training programs often focus on raising employee’s awareness on phishing attacks, password hygiene, secure data handling, and incident reporting protocols.
• Incident response planning: Helping organizations develop effective strategies on risk mitigation, incident response and remediation. These services guide security teams through playbook creation, communication planning, and response action items to ensure faster recovery during real incidents.
• Endpoint protection solutions: Implementing modern cybersecurity tools to protect networks and devices. This step covers deploying EDR/XDR platforms, hardening configurations, and improving visibility into endpoint behaviors across hybrid environment.
• Compliance assistance: Supporting organizations in alignment with industry regulations and standards like GDPR, HIPAA, and NIST. It includes security policies gap analysis, audit preparation, and mapping security controls to regulatory frameworks.

Beyond improving baseline security, loss control services help organizations mitigate specific risk factors that drive cyber insurance decisions. These include identity-related exposure, incident response readiness, and the maturity level of security controls within the environment.

Why are loss control services important for insureds?

While the cyber insurance market has softened, the risk of ransomware and identity-based attacks remains high. Organizations of all sizes, from SMBs to the Fortune 500, can be affected and it can cost them a lot.

The increasing frequency and severity of cyberattacks has led insurers to re-evaluate their risk mitigation strategies. Loss control services are now a critical component of cyber insurance policies because they help reduce the frequency of claims by proactively addressing security exposures, and lower claim severity by enabling faster, more effective incident response.

They also enhance risk selection by giving underwriters greater visibility into a policyholder’s cybersecurity posture, which can lead to more favorable terms, fewer restrictions, and improved pricing. Finally, loss control services strengthen relationships between insurers and insureds by providing ongoing value and support in an increasingly competitive market.

Don’t leave your cyber insurance potential untapped. Leverage loss control services.

If you are not taking full advantage of the loss control services your broker and carrier offer, you are leaving real value and protection on the table. In today’s cyber insurance market, loss control is not just helpful; it is essential. These services are designed to proactively strengthen your identity security posture, reduce the likelihood of costly claims, and help you negotiate better coverage terms.

Cyber threats are evolving fast, and insurers are rewarding businesses that invest in risk management. The more you use the tools and expertise available to you, the more resilient and insurable your business becomes. Before you renew or purchase your next policy, make it a priority to explore what loss control services are included. The right support could mean the difference between surviving a cyberattack or suffering major losses.

Protect your business, maximize your coverage, and get the full value you are paying for. Start by asking: What loss control services are available to me?

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