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SafeKey and Cyber Insurance

Why Password Management Matters

Cyber-insurance policies in New Zealand are becoming more specific about basic cybersecurity hygiene. Providers such as IAG expect businesses to take reasonable steps to protect access to their systems, and password handling is a key focus area.

Why insurers care about passwords

From an insurer’s perspective, passwords are the front door to your business systems. Poor practices such as:

  • Writing passwords on paper

  • Storing them in text files or spreadsheets

  • Sharing logins between staff

  • Reusing the same password across multiple services

are seen as avoidable risks.

If a cyber incident occurs and an investigation shows that passwords were written down or poorly managed, insurers may determine that minimum security standards were not met. This can result in a claim being declined, even if the breach itself was external.

How SafeKey supports IAG expectations

SafeKey is designed to help New Zealand businesses align with the types of controls insurers like IAG expect to see in place.

SafeKey helps by:

  • Removing the need to write down passwords
    Users can access systems securely without ever seeing or recording the actual password.

  • Enforcing strong, unique passwords
    Each system can have its own complex password without increasing staff effort.

  • Controlling access centrally
    When someone leaves the business, access can be removed immediately, reducing ongoing risk.

  • Reducing informal password sharing
    Access is granted through secure sharing, not emails, notes, or memory.

Stronger evidence in the event of a claim

If your business needs to make a cyber-insurance claim, being able to show that you use a managed password system like SafeKey demonstrates that reasonable and recognised security controls were in place. This puts you in a far stronger position during an insurer’s assessment.

A simple step with serious impact

Writing down passwords is one of the easiest ways to unintentionally undermine your cyber-insurance cover. SafeKey replaces that risk with a simple, controlled, and NZ-supported solution, helping protect both your systems and your ability to rely on your insurance when it matters most.

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