Cyber Insurance & Backup as a Service to trend in 2025

As businesses navigate the evolving landscape of cyber threats and insurance requirements, MSPs will play a pivotal role in both facilitating cyber insurance eligibility and meeting the growing demand for Backup as a Service. Brian Dutton, Chief Revenue Officer, Americas, Assured Data Protection looks ahead for 2025 and shares his top two predictions and how they will continue to shape the MSP market in 2025 and beyond.

MSPs will play a prominent role in cyber insurance eligibility

As the threat of ransomware continues, for many organizations, cyber insurance is an ongoing requirement. As insurance companies become more knowledgeable about the exact nature of risks faced by different kinds of businesses, their cyber insurance requirements are becoming more stringent and increasingly stipulate as part of a checklist the necessity for immutable backups. This is a trend that is set to continue in 2025. 

Next year, we’re also expecting to see the continuation of a trend that has emerged over the past two years for enterprises that don’t currently have cyber insurance. That is, enterprises reaching out to data protection service providers to gain access to cyber insurance. We’re already seeing a shift with more customers coming to us to request audit reports or insurance questionnaires to provide validation to insurers that their backups are immutable and their DR available in a 3rd party Clean Room. In some instances, these audits have helped customers avoid increases in cyber insurance premiums.

Insurance companies are trying to mitigate their risk and businesses need to know they have a reliable resource in place that will throw a protective layer over their data and be able to recover their digital assets in the event of a breach or incident as an insurance guarantor. Vendors and MSPs can help here, becoming trusted third parties that can guarantee their data protection and security. 

Demand for Backup as a Service will surge in 2025 alongside MSP growth

Ongoing pressure related to staff, resources and time, combined with directives to operationalize costs will see a surge in demand for Backup as a Service in 2025. While this will be an across-the-board trend, it will be particularly apparent in the healthcare sector.  Resource constraints, together with data privacy requirements and the unique nature of the risk faced, in the event of a successful cyber attack, which can result in severe disruption to patient care will be the driver here.

Demand for Backup as a Service is also linked to the trend over recent years across the MSP sector based on the shift from Capex to Opex, together with a recognition of MSPs having delivered value for customers. This has led to increasing levels of trust in MSPs. There is also a push in the market for consumption based or utility pricing.  Companies want to consume services similar to the cloud model offered by the hyperscalers. This trend will continue in 2025, along with bigger deal sizes for MSPs.

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