Penetration Tests as a Remedy for Rising Cyber Insurance Costs

Cybersecurity insurance

As technology advances and organizations become increasingly dependent on data, the risks of data breaches and cyberattacks are also rising. The implementation of data protection and cybersecurity legislation, such as GDPR and NIS2, has made it mandatory for organizations to report breaches of personal data to affected parties. Therefore, it has become essential for companies to protect themselves against the financial and reputational costs of cyber incidents.

One solution for organizations is cybersecurity insurance, despite the rising costs; the average cost increased by 79% in the second quarter of 2022. Even with strict admission requirements that have arisen in response to risks and increases in successful breaches during and after COVID-19, cyber insurance remains essential for organizations to protect sensitive customer information and their own data.

While cyber insurance is not a one-size-fits-all solution and may not cover every situation, it can help organizations mitigate the financial and reputational risks of cyberattacks and data breaches. Almost every modern organization uses, sends, or stores data, which means that nearly every modern business relies on cyber insurance as part of its risk management strategy.

The Admission Requirements for Cybersecurity Insurance

When it comes to offering cyber insurance, providers begin by evaluating an organization’s cyber risk profile, including an assessment of whether regular penetration tests are conducted. Depending on the outcome, as well as other findings in the assessment, the admission requirements (and rates) can change significantly.

Penetration testing is an effective way to identify vulnerabilities in systems, networks, and web applications before attackers can exploit them. It helps organizations remediate vulnerabilities before they pose a serious threat. However, traditional penetration tests can take weeks to set up, and the results are snapshots, leaving critical vulnerabilities exposed longer than they should be.

Frequent pentesting, conducted via Penetration Testing as a Service (PTaaS), solves this problem. PTaaS provides continuous monitoring and reduces the risk of cyberattacks. Organizations have direct access to penetration testers and their expertise to resolve vulnerabilities, enabling IT and development teams to remediate them effectively.

PTaaS delivers ongoing insight into vulnerabilities, making this approach suitable for organizations that need a cost-effective and flexible way to conduct pentests and secure their systems.

By utilizing a PTaaS solution, organizations can conduct regular pentests without the time-consuming administrative process that precedes them. This proactive approach helps identify and remediate vulnerabilities before attackers can exploit them, allowing organizations to feel assured that their cybersecurity posture is strong. Having such a solution positively impacts insurers’ peace of mind, as you regularly conduct pentests, which can significantly affect your eligibility for cyber insurance—and the impact it will have on your budget.

To maintain a robust cybersecurity program, reduce the risk of cyberattacks, and keep insurers satisfied, you may consider a PTaaS solution.

Less Risk, More Insight, and Automated Services

BOSSIT offers a range of penetration testing services to help organizations identify and remediate vulnerabilities and logical flaws. By combining automated scanning with frequent high-quality manual pentests, organizations gain the most accurate picture of their vulnerability status.

With evolving cyber threats, continuous monitoring of your infrastructure is essential.

Contact BOSSIT for more information about penetration testing services and how you can maintain robust cybersecurity that satisfies insurers and keeps threats at bay.

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