As technology continues to advance and organizations continue to become more and more reliant on their systems and data, the risks associated with data breaches and cyber-attacks have also increased. The introduction of data privacy laws, such as the GDPR, has made it mandatory for organizations to disclose breaches of personal data to those affected. As such, it has become essential for businesses to protect themselves from the financial and reputational costs of a cyber incident.
One solution to help organizations protect themselves is, of course, cyber insurance - despite the rising costs, where the average price in the U.S. rose 79% in the second quarter of 2022.
Also, with strict eligibility requirements that have emerged in response to increased risk and sharp spikes in successful breaches during and post-COVID-19, cyber insurance remains an essential component needed for organizations to effectively rebound from a potential cyber incident.
While cyber insurance is not a one-size-fits-all solution and may not cover every possible scenario, it does help organizations mitigate the financial and reputational risks associated with a cyber-attack and/or data breach. Pretty much every organization these days uses, sends, or stores data - which means almost every business should have cyber insurance as a part of its overall risk management strategy.
Understanding Cyber Insurance Eligibility
When it comes to offering cyber insurance, providers begin by evaluating an organization's cyber security risk profile - which includes an assessment of whether regular penetration testing is conducted. Depending on the outcome, as well as other findings in the assessment, eligibility (and rates) could change significantly.
Pen testing is an effective way to detect vulnerabilities in web applications before attackers can exploit them. It helps organizations better understand the application's attack surface and remediate vulnerabilities before they turn into a serious threat. However, traditional pen testing delivery takes weeks to set up, and the results are really only at a given point in time, leaving critical application vulnerabilities exposed for longer than they should.
A new wave of automated pen tests conducted through a software-as-a-service (SaaS) delivery model, known as Penetration Testing as a Service (PTaaS), resolves this problem. PTaaS provides ongoing, recurring testing which reduces the risk of a cyber-attack. This capability gives organizations direct access to pen testers and a knowledge base for how to fix vulnerabilities, enabling IT and development teams to remediate them effectively.
PTaaS delivers vulnerability findings in real time via a portal that displays all relevant data for parsing vulnerabilities and verifying the effectiveness of remediation. This approach is well-suited for agile organizations that need a cost-effective and flexible way to audit and secure web applications at scale.
Reduced Risk, Automated Assurance and Visible Vulnerabilities
By using a PTaaS solution, organizations can conduct regular pen tests without the time-consuming and resource-intensive traditional delivery model. This proactive approach helps identify and remediate vulnerabilities before attackers can exploit them, providing organizations with peace of mind that their cybersecurity posture is strong. Understandably, having such a solution in place will offer insurers peace of mind that you're conducting regular tests, which could have a huge impact on your cyber insurance eligibility – and the impact it will have on your budget.
To help maintain a robust cyber security program, reduce the risk of cyber-attacks, and keep insurance providers smiling, consider recurring Penetration Testing as part of your overall cybersecurity strategy.
FPA provides a range of pen testing services helping our clients identify and remediate vulnerabilities and logical errors in real-time for faster remediation. By combining automated scanning with a cycle of high-quality manual testing, organizations get the most accurate view of vulnerability findings.
With cyber threats constantly evolving, continuous monitoring of your web applications is an essential approach to staying ahead of the ever-changing threat landscape.
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