I just upgraded my office to Office 365 E3 so everyone has outlook 2013 installed on the app and have found that Outlook no longer ask for a password.  While is may seem strange to want this extra layer of security that is what we are used to and have always had until now.   For some reason that I am unaware of the Exchange Settings --> Security Tab (settings are grey)  ie. user identification and Logon Network Security and Encryption.

They can't be modified any more. Is there any documentation on this?   Why was it removed?  how do I enable it?  Or, Why shouldn't I enable it.

We all have Windows 7 and 8.1 and some with 10.  Some are still using office 2007 and some have 2010 but most have 2013.

It can be run as local user or domain admin.  still the same result.

Hi 

I suspect something wrong on certificates for the outlook.
Inorder to use this functionality we need to have certificates imported and configured in the outlook to do so.



In Outlook click File -> Options ->Trust Center and choose Trust Center Settings and finally E-Mail Security. 
There you can either import your exisiting Digiatal ID or configure Outlook to use existing certificate to sign and encrypt messages. Until this features are not configured, Outlook Option stays greyed out.

That's most likely because Outlook is connecting via the MAPI/HTTP method, so those settings are no longer relevant. To confirm this, hold the CTRL key, right-click on Outlook's icon in the tray, select Connection status. Note the value of the 'Server name' and/or the 'Protocol'.