Cyber insurance used to be a safety net. Today, it is a scrutinized risk-sharing agreement, one that now demands real, tested proof of resilience. As ransomware threats persist and payouts remain high, insurance providers are tightening their standards, placing greater emphasis on verified, resilient backup strategies that can support rapid recovery and reduce risk exposure.
Ransomware Demands Are Down, But the Risk Is Not
According to Chainalysis, ransomware payments dropped 35% in 2024, totaling $813.55 million, down from $1.25 billion in 2023. Despite the decline, attackers remain active, increasingly sophisticated, and are now targeting backup systems directly. As insurers process more claims, they’ve raised the bar on what qualifies a business for coverage.
Why BaaS Is Now a Prerequisite for Coverage
As cyber threats grow more complex and costly, insurance providers are raising the bar for coverage eligibility. Today, many underwriters expect businesses to demonstrate robust data protection measures, including secure, offsite, and regularly tested backups. Organizations that implement modern Backup-as-a-Service (BaaS) solutions are better positioned to qualify for coverage, reduce their premiums, and streamline the claims process by proving they can recover quickly from attacks.
Insurers now assess whether your backup system is:
- Immutable – Protected from being altered or deleted by ransomware.
- Offsite – Isolated from your primary infrastructure to prevent lateral attacks.
- Auditable – Capable of producing logs and recovery tests to prove readiness.
- Fast to recover – With defined RTOs (Recovery Time Objectives) that reduce downtime.
These are not “nice-to-haves;” they are quickly becoming non-negotiable underwriting requirements.
What to Look for in a Backup Solution
Not all backup systems are created equal. Legacy, on-premise setups often lack the modern features that today’s insurers demand. That is where Ozone’s Backup-as-a-Service (BaaS) platform stands out.
Ozone offers four purpose-built BaaS options that support:
- Seamless backup and recovery for physical and virtual environments, tailored to your business needs
- Reliable data protection for essential applications and databases with consistent, point-in-time recovery
- Built-in disaster recovery to maintain business continuity and minimize downtime during disruptions
- Scalable, cloud-based backup solutions engineered for today’s hybrid and multi-cloud infrastructures
These offerings combine redundancy, automation, and compliance-ready reporting, giving IT leaders peace of mind and giving insurers what they need to underwrite your policy.
Cyber insurance is evolving. If your organization cannot demonstrate it has verified, secure, and immutable backups in place, you risk being uninsurable or paying far more for coverage than you should.
Ozone’s BaaS solution does not just protect your data. It protects your insurability.
Explore Ways to Improve Your Insurability with BaaS
Discover Ozone’s full suite of Backup-as-a-Service solutions to see how your business can improve resilience, reduce premiums, and prepare for whatever comes.
