Building Trust in MSP Cyber Insurance: Edouard von Herberstein Discusses Spectra's Impact

Business of Tech: Daily 10-Minute IT Services Insights

The managed service provider (MSP) cyber insurance landscape is facing significant challenges, primarily due to the certification process rather than the coverage itself. Edouard von Herberstein, a seasoned expert in complex risk management, recognized the inefficiencies within this system and founded Spectra, the first MSP certification platform acknowledged by major insurers. His insights reveal that the lack of trust and understanding between insurers and MSPs has created a bottleneck, preventing effective collaboration in enhancing cyber resilience and risk management.

Spectra's approach focuses on certifying the MSP as an organization rather than individual technicians. This certification process involves a thorough examination of how MSPs protect themselves, the resilience of the solutions they offer, and the deployment of these solutions to customers. By ensuring that MSPs meet specific standards and best practices, Spectra aims to build trust with insurers, who have historically been skeptical of the MSP sector. This certification not only enhances the credibility of MSPs but also provides insurers with a reliable way to assess risk.

The conversation also touches on the skepticism that exists on both sides of the insurance and MSP relationship. Many MSPs view insurers as profit-driven entities that often deny claims, while insurers perceive MSPs as lacking value. However, through initiatives like Spectra, there is a growing recognition of the mutual benefits that can arise from collaboration. Brokers are increasingly seeking certified MSPs to refer to clients, creating a new dynamic where both parties can thrive.

Finally, the discussion highlights the importance of insurance in the broader context of cybersecurity. While some argue that organizations can self-insure by maintaining sufficient funds for potential breaches, the reality is that many SMEs do not recover from incidents like ransomware attacks. Insurance provides not only financial support but also critical guidance and resources post-incident. By fostering a partnership between certified MSPs and insurers, Spectra aims to create a more resilient cybersecurity ecosystem that benefits all stakeholders involved.

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