How MSPs and Cyber Insurance Providers Can Unite to Fortify the Future

The cybersecurity conversation has changed. It’s no longer just about firewalls and antivirus; it’s about operational resilience. A new report from the Institute for Security and Technology (IST) is further evidence of this shift, examining how cyber insurance providers can help strengthen a businesses’ pre-breach cybersecurity practices.

Managed service providers (MSPs) know, as well as anyone, that businesses need help when it comes to making risk-reducing decisions. At Coalition, we recognize the important role that MSPs play within our day-to-day operations, especially given the nature of technology and cybersecurity challenges among small businesses. 

Let’s face it: When it comes to mitigating cyber risk, we’re all on the same team.

MSPs are vital to making risk management strategies effective, and Coalition believes collaborating is the best path forward. Let’s unpack how MSPs and cyber insurance providers can unite to fortify the future and benefit everyone, most importantly, our mutual customers.

Today’s threat landscape demands collaboration

The cyber threat landscape grows more complex by the day. More than 40,000 software vulnerabilities emerged in 2024 alone (a 38% increase from 2023), and another 45,000 vulnerabilities are expected in 2025. Ransomware gangs are becoming more prolific, and their attacks have already devastated entire industries.

In this environment, businesses need two things:

1. Technical protection and monitoring to prevent and detect attacks

2. Loss mitigation and incident support when cyber attacks inevitably occur

This is where MSPs and cyber insurance providers can complement each other. Some MSPs see cyber insurance as an unwelcome intrusion into their turf. But the truth is, cyber insurance providers care most about minimizing losses: Since inception, Coalition has paid out more than $285 million across more than 10,000 claims.

“Co-marketing partnerships can ease the process of underwriting, making it simpler for a business to demonstrate their security posture and qualify for coverage.” — The Institute for Security and Technology

Cyber risk management requires deep alignment across all stakeholders of an organization, as well as active participation and collaboration. Without managed security controls, many businesses wouldn’t qualify for cyber insurance coverage.

MSP involvement and expertise are critical to a cyber insurance provider's’ability to limit losses and payouts. As IST notes in its report, “co-marketing partnerships can ease the process of underwriting, making it simpler for a business to demonstrate their security posture and qualify for coverage.”

4 key benefits of cyber partnership

Offering security services (like managed detection and response or security awareness training) on top of an organization’s cyber insurance coverage is a strategic business move that can directly increase revenue, improve client retention, and differentiate MSPs in a crowded market.

1. Simplifying the sales conversation

Most small businesses are overwhelmed by the sheer number of security products and services available, let alone cyber insurance coverage options. By partnering with cyber insurance providers to offer a comprehensive package, MSPs can become a one-stop shop for operational resilience and cyber risk management.

Coalition has a vested interest in helping clients minimize losses by implementing security controls that help reduce the frequency of claims. Businesses that purchase managed detection and response services or security awareness training from Coalition Security™ or other approved vendors may also see added insurance benefits, including premium credits and coverage enhancements on their cyber insurance policies.

Delivering an integrated package makes it easier for your clients to say “yes,” helps close deals faster, and further positions MSPs as the go-to authority for both prevention and recovery.

By partnering with cyber insurance providers to offer a comprehensive package, MSPs can become a one-stop shop for operational resilience and cyber risk management.

2. Creating predictable, recurring revenue

Combining security services with insurance offerings (whether formally or through a referral process), enhances the possibility of long-term managed service agreements with built-in project work.

A client that is applying for cyber insurance, for example, may see a greater need for support with ongoing risk assessments, security control implementations, employee training, and regular monitoring in order to qualify for and/or maintain comprehensive policy coverage.

Consider this: In 2024, Coalition issued more than 85,000 security alerts to policyholders, directly resulting in the mitigation of more than 32,000 security issues. Many of these security issues require hands-on support from MSPs, constituting ongoing, billable work, not just one-off projects.

3. Strengthening client loyalty

Helping a client navigate both the technical side of cybersecurity and minimize cyber exposure can make MSPs indispensable.

Clients are far less likely to churn when their entire cyber risk strategy — from protection to insurance claims support — runs through their MSP. What’s more, MSPs benefit from policyholder retention on the insurance side, too.

Overall, 83% of Coalition policyholders renew their policies, and that continuity isn’t just for businesses that avoid claims. Among businesses that experience a cyber insurance claim, 80% renew coverage the following year. Deeper integration of these security tools can translate to longer-term relationships and greater lifetime value per client.

Clients are far less likely to churn when their entire cyber risk strategy — from protection to insurance claims support — runs through their MSP.

4. Improving market positioning

As more MSPs jump into security services, it’s getting harder to stand out. Working with cyber insurance providers to offer combined cyber resilience packages gives you a clear differentiator.

MSPs aren’t just selling firewalls and endpoint agents: You’re helping your clients fortify their future, and they deserve the best products and services to achieve that goal.

Coalition policyholders experience 73% fewer claims than the industry average with 56% of all reported matters handled without any out-of-pocket payments by the policyholder. This forward-facing message resonates with decision-makers and boards that care about risk management, business continuity, and securing financial stability, not just technical jargon.

Stronger together: A better approach to cyber risk 

Working with cyber insurance providers isn’t about MSPs ceding control; it’s about creating new revenue, simplifying service offerings through integrated solutions, and deepening client relationships. A fortified collaboration turns incident response into an opportunity for broader security sales and positions MSPs as strategic advisors.

Coalition’s Cyber Insurance Readiness & Compliance (CIRC) program provides MSPs a clear path forward, enabling them to use cyber insurance as a catalyst for deeper conversations about cybersecurity. With CIRC, you can discuss cyber risk in terms of financial loss, like existing threats, balance sheet impact, and how security investments can reduce exposure.

CIRC is designed to validate, not dictate, an MSP’s technology stack. If you’re already delivering strong security controls to your clients, Coalition can offer more streamlined policy qualification and maximize potential policy benefits for those same customers. 

Working with cyber insurance providers isn’t about MSPs ceding control; it’s about creating new revenue, simplifying service offerings through integrated solutions, and deepening client relationships.

No single solution can address every risk that your clients face. We see the future of cybersecurity (and cyber insurance) as integrated, collaborative, and built on strong connections between a policyholder’s key stakeholders. MSPs that embrace this model today will be the ones leading the conversation tomorrow.

Contact the Coalition Partnerships Team to learn more about how our security solutions and CIRC can help you protect your clients and grow your business.

Coalition Insurance Solutions, Inc., an affiliate of Coalition, Inc. (“CIS”), a leading cyberinsurance insurance provider in the U.S, is a licensed insurance producer and surplus lines broker (Cal. license # 0L76155), acting on behalf of a number of unaffiliated insurance companies, and on an admitted basis through Coalition Insurance Company a licensed insurance underwriter (NAIC # 29530). Coalition Incident Response, Inc dba Coalition Security, an affiliate of Coalition Inc., provides security products and services globally. Coalition Security does not provide insurance products. Products and services may not be available in all countries and jurisdictions and insurance coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. See licenses and disclaimers.

Coalition is the marketing name for the global operations of affiliates of Coalition, Inc.

This blog post is designed to provide general information on the topic presented and is not intended to construe or the rendering of legal or other professional services of any kind. If legal or other professional advice is required, the services of a professional should be sought. The statements contained herein are not a proposal of insurance but are for informational purposes only. Insurance coverage is subject to and governed by the terms and conditions of the policy as issued. Coalition makes no representations regarding coverages, exclusions or limitations in any products offered on behalf of any insurer. The views and opinions expressed as part of this blog post do not necessarily state or reflect those of Coalition. Neither Coalition nor any of its employees make any warranty of any kind, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product or process disclosed. The blog post may include links to other third-party websites. These links are provided as a convenience only. Coalition does not endorse, have control over nor assumes responsibility or liability for the content, privacy policy or practices of any such third-party websites.

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