How compliance frameworks strengthen security and insurability

This blog was written in partnership with the Vouch team.

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Today, cyber threats are more pervasive than ever, with businesses facing increasing risks from data breaches, ransomware attacks, and regulatory fines. A quick perusal of recent compliance statistics shows the prevalence of these security risks and the ways businesses are using compliance tools to manage risk. To mitigate these threats, many companies turn to cyber insurance for financial protection.

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However, securing and maintaining cyber insurance isn’t just about paying a premium. Insurers scrutinize an organization’s security posture before offering coverage, and that’s where compliance audits come in. Frameworks like SOC 2, ISO 27001, and HIPAA signal to insurers that a business takes cybersecurity seriously, making it easier to qualify for coverage and potentially lowering premiums.

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In this post, we’ll be covering how achieving critical frameworks can strengthen your cybersecurity, improve insurability, and reduce costs.

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How compliance audits improve insurability

1. Demonstrating strong security controls

Cyber insurers assess risk before issuing policies. Compliance audits serve as proof that an organization has implemented robust security measures.

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For example, insurers may request a SOC 2 report to verify that a company enforces data encryption, access management, and continuous monitoring. Organizations that achieve SOC 2 or ISO 27001 demonstrate a proactive approach to cybersecurity, reducing their perceived risk and increasing their chances of securing better policy terms and lower premiums.

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2. Minimizing the impact of security incidents

Companies that have achieved a SOC 2 report or an ISO 27001 certification have already demonstrated a strong commitment to security. These frameworks require organizations to implement robust controls—such as incident response plans, continuous monitoring, and strict access management—which signal to insurers that the company takes risk seriously.

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While no security program can guarantee complete protection, businesses that follow these standards are typically better equipped to respond quickly and effectively when incidents occur. This level of preparedness not only reduces potential losses and downtime but also protects customers, brand reputation, and long-term value—making these companies a lower-risk and more attractive proposition for insurers.

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How to lower your cyber risk 

Achieving compliance isn’t just about meeting regulatory standards. It also delivers clear financial advantages when securing cyber insurance.

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Companies that use Vanta in partnership with Vouch consistently see stronger insurance outcomes. Based on Vouch data as of April 2025, those with SOC 2 compliance have a 40% lower claims frequency compared to those without it. This reinforces what we’ve seen time and again: investing in security and compliance helps prevent incidents and reduce costs.

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"Stronger security doesn't just prevent bad things from happening, it directly reduces your insurance cost as well," says Travis Hedge, Vouch Co-Founder and CRO. "The data is clear—companies using Vanta are less risky, allowing Vouch to offer better Cyber insurance pricing and terms."

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By using Vanta’s automated compliance platform, businesses can:

• Put the right security controls in place
• Streamline their audit process
• Lower their cyber risk and insurance costs
• Unlock more favorable pricing with Vouch

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When companies invest in both Vanta and Vouch, they don’t just meet security requirements. They build a resilient foundation that helps them stay protected, operate with confidence, and secure better coverage.

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Strengthen your security and unlock better cyber insurance

Achieving compliance doesn’t have to be time-consuming. Learn how Vanta can help you achieve SOC 2, ISO 27001, and other compliance certifications faster and more efficiently. Ready to see how it works? Request a demo to get started.