Why security experts should re-evaluate identity governance as a strategic tool

At a time when cyber attacks are becoming an existential threat to businesses, the topic of identity governance and administration (IGA) is becoming increasingly relevant – not only for defending against security risks, but also as a key lever for improving cyber insurance conditions. Security experts are under increasing pressure today: they must not only ensure technological resilience, but also optimise the economic framework conditions for emergencies.

Cyber insurance in transition – IGA as a door opener for better policies

What was long considered an optional add-on is now standard: over 64% of companies already have cyber insurance. But the market is changing dramatically. Insurers are responding to rising claims and growing risks with tougher requirements, more comprehensive checks and differentiated pricing. Key questions include: How are digital identities managed within the company? Who has access to what, when and why?

Modern IGA solutions provide reliable answers to these questions. They create transparency across all identity-related processes, consistently implement security principles such as least privilege and separation of duties, and enable fine-tuned control and documentation of all access rights. These are strong signals for insurers: companies with a well-thought-out identity governance structure are considered less risky – with correspondingly positive effects on premiums and insurance coverage.

The dangerous gap between risk and coverage

A look at the figures reveals a disturbing reality: the average ransom demand in ransomware attacks is currently 800,000 US dollars – but only 19 per cent of companies have insurance coverage exceeding this amount. This coverage gap is not only a financial risk, but also a strategic one. The good news is that this delta can be specifically addressed with an established IGA system.

Insurers are increasingly demanding verifiable protective measures. A live IGA programme with automated access control, regular audits and clearly documented processes is now an essential part of any cyber security strategy – and can make the difference between rejection, restriction or full coverage in the event of a claim.

Compliance and IGA: More than just rule compliance

Security experts know that effective identity management is also a compliance tool. Regulatory requirements such as the GDPR, the NIS2 directive framework and industry-specific security standards require proof that personal data and critical systems are only accessible to authorised persons – seamlessly, audibly and traceable at all times.

A modern IGA system meets precisely these requirements: it enables granular management of digital identities and secures their lifecycle from onboarding to deactivation. At the same time, automatic recertification ensures that no orphaned accesses arise – a key risk factor for internal threats.

Zero trust and automated governance – requirements become advantages

Today’s leading IGA platforms follow a zero trust approach and enable highly automated governance. For security experts, this means that instead of manually assigning rights or responding to checks, they can proactively control access structures based on risk.

Modern systems offer complete transparency, enable role-based access control and provide data that can be evaluated at any time for internal and external audits. The result: a significantly improved security situation that translates directly into better insurance conditions and greater resilience.

IGA as a strategic business enabler – not just an IT tool

In many companies, IGA is still seen as a purely IT task. However, with the increasing complexity of business models, regulatory requirements and insurance conditions, it is becoming clear that identity governance is an issue for top management. It plays a decisive role in determining how vulnerable a company is – and how it can protect itself financially in the event of an emergency.

Security experts should therefore position IGA as a business enabler. An integrated approach that combines privileged access management, multi-factor authentication and automated role management is not only a protective shield, but also a competitive advantage – both against attackers and in discussions with insurers.

IGA is the new standard for digital resilience

Anyone who takes digital security seriously today cannot ignore IGA. The combination of regulatory compliance, technical control and economic benefits makes identity governance one of the central pillars of modern cyber strategies. For security experts, this means that now is the time not only to implement IGA, but also to think strategically – and thus strengthen the digital resilience of their company in the long term.

About the author: Thomas Müller-Martin is Field Strategist DACH at Omada. He advises companies on the implementation of secure and compliant IGA strategies. www.omadaidentity.com