Munich Re and TÜV SÜD combine cyber resilience assessments with insurance

Munich Re and TÜV SÜD have developed an approach that combines independent cyber resilience assessments with insurance underwriting, aiming to give companies a clearer understanding of their security vulnerabilities and insurers more reliable evidence for evaluating cyber risks.

The initiative addresses growing challenges in measuring cybersecurity resilience as organizations become increasingly dependent on complex digital supply chains, interconnected systems and operational technology (OT) alongside information technology (IT).

• Munich Re and TÜV SÜD have developed an approach combining independent cybersecurity inspections with cyber insurance underwriting and risk management.
• Assessments cover IT and OT security, third-party exposures, business continuity and compliance with NIS2, ISO 27001, NIST and GDPR requirements.
• Independent evaluations aim to improve cybersecurity risk transparency, identify vulnerabilities and support more informed insurance decisions.

Cyber threats have become a major business concern worldwide. New regulatory requirements are also placing greater responsibility on senior management to identify and mitigate vulnerabilities, strengthen operational resilience and transfer risks through insurance where appropriate.

For companies, the challenge is establishing how effectively their existing security controls protect operations and where significant exposures remain.

Connecting cyber risk management with insurance underwriting

Many organizations already collect extensive cybersecurity information through established security programs, internal governance frameworks and regular audits.

Cyber insurers conduct their own evaluations through structured underwriting processes, detailed discussions with policyholders and information gathered from clients across different industries and geographical markets.

These assessments draw on policyholder disclosures and insurers’ experience with cyber incidents and claims. The findings inform underwriting and pricing decisions, but recommendations for improving security are often only partially incorporated into broader corporate risk management strategies.

Munich Re and TÜV SÜD aim to connect these processes more closely by using independent assessments to support both cybersecurity improvements and insurance risk evaluation.

Cyber resilience becomes a board-level responsibility

Cyber resilience is increasingly a management and governance issue, particularly for multinational businesses operating across multiple countries, technologies and regulatory environments.

Boards, supervisory bodies and regulators expect organizations to demonstrate their ability to withstand cyber incidents and identify weaknesses that could affect business operations.

Meeting regulatory requirements and cybersecurity standards does not necessarily establish whether security controls are effective. Companies also need reliable information about their cybersecurity maturity, remaining exposures and areas requiring improvement.

This makes independent evidence particularly relevant for organizations seeking to evaluate risk consistently across business units and jurisdictions.

TÜV SÜD inspections assess cybersecurity maturity and IT/OT risks

Under the approach developed with Munich Re, TÜV SÜD conducts an independent, structured inspection of an organization’s cyber resilience capabilities.

The assessment is designed to establish an evidence-based view of existing security measures, identify vulnerabilities and recommend targeted improvements.

It follows recognized cybersecurity standards and frameworks for IT and OT environments, including the EU’s NIS2 Directive, ISO 27001, the NIST Cybersecurity Framework and relevant data protection requirements under the General Data Protection Regulation (GDPR).

The inspection goes beyond conventional questionnaire-based evaluations through a structured, multi-stage review of cybersecurity controls and operational resilience.

TÜV SÜD examines governance structures, security policies, accountability arrangements and the organization of cyber risk management responsibilities.

Technical assessments cover asset management and visibility of critical systems, vulnerability and patch management, identity and access controls, and remote access security.

The process also evaluates threat detection, incident response capabilities, crisis management and business continuity planning. Supply chain dependencies, third-party risk management, data protection and regulatory compliance form additional areas of examination.

Particular attention is given to supply chain resilience and the effectiveness of existing business continuity, recovery and incident response plans.

The resulting assessment provides management with evidence of cybersecurity maturity, the effectiveness of protective measures and areas where residual risks require further attention.

Independent cyber assessments support insurance coverage decisions

For insurers, incorporating independent inspection findings into underwriting provides additional information about the nature and effectiveness of a policyholder’s cybersecurity controls.

Traditional cyber underwriting relies partly on information supplied directly by insured organizations, supported by insurers’ claims experience and risk assessments.

The TÜV SÜD inspection adds independently gathered evidence, potentially improving the evaluation of exposures that may be difficult to identify through self-assessments alone.

Supply chain and third-party risks are particularly relevant. A more detailed understanding of these dependencies can support the development of broader cyber insurance solutions, including coverage for contingent losses resulting from incidents affecting external service providers or other third parties.

For policyholders, the findings can help prioritize cybersecurity investments, address weaknesses and improve operational recovery capabilities.

Integrating cyber risk prevention and insurance protection

The Munich Re and TÜV SÜD approach is intended to establish a closer connection between cybersecurity risk management, continuous improvement and insurance-based risk transfer.

Organizations receive an independent evaluation of their current security maturity alongside recommendations for strengthening resilience. Insurers gain additional evidence to inform underwriting decisions rather than relying primarily on self-reported information.

A common assessment framework can also improve transparency between policyholders and insurers, allowing both parties to work from a more consistent understanding of cyber exposures.

By connecting inspection findings with prevention measures and insurance assessments, the approach is designed to support more informed risk decisions and ongoing improvements in cybersecurity resilience.