SafeKey and Cyber Insurance Alignment

Cyber-Insurance Providers

Cyber-insurance providers in New Zealand increasingly assess whether an insured business has implemented reasonable and appropriate security controls. Organisations such as IAG place particular emphasis on access control and credential management, as these are commonly exploited during cyber incidents.

Failure to maintain adequate controls in these areas may affect the outcome of a claim.

Password management as an insurability consideration

In the event of a cyber incident, insurers will typically review whether basic security practices were followed. Practices such as:

• Writing passwords on paper or in notebooks

• Storing passwords in unencrypted text files or spreadsheets

• Sharing credentials between staff

• Reusing passwords across multiple systems

are widely regarded as avoidable weaknesses. If such practices are identified during an investigation, an insurer may conclude that minimum security standards were not met. This can result in claim reductions or denial of cover, regardless of the original cause of the breach.

How SafeKey supports reasonable security controls

SafeKey is a New Zealand–hosted password management service designed to help businesses meet commonly expected cyber-insurance controls.

SafeKey assists by:

• Eliminating written and insecurely stored passwords
  Credentials are stored securely and accessed without being disclosed to users.

• Enforcing strong, unique credentials
  Each system can use a unique, complex password without increasing operational burden.

• Providing centralised access management
  User access can be modified or revoked immediately when employment or roles change.

• Reducing uncontrolled credential sharing
  Access is managed through structured permissions rather than informal sharing methods.

Supporting evidence in the event of a claim

Following a cyber incident, insurers may require evidence that appropriate controls were in place prior to the event. The use of a managed password solution, such as SafeKey, demonstrates that the business took reasonable steps to protect access to systems and data, aligning with insurer expectations for risk management.

Reducing risk to both systems and insurance cover

Poor password practices remain one of the most common factors identified during cyber-incident reviews. By eliminating the need to write down, reuse, or share passwords informally, SafeKey helps reduce operational risk and strengthens a stronger position when engaging with insurers.

SafeKey provides a practical, locally supported control that helps protect business systems — and helps ensure cyber-insurance remains effective when it is most needed.