What is the role of penetration testing in cyber insurance?

Penetration testing is an important factor in obtaining or improving cyber insurance coverage because it helps assess an organization’s security posture by simulating real-world cyber attacks. By identifying vulnerabilities and weaknesses through penetration testing, businesses can proactively address security gaps to reduce the likelihood of a successful cyber breach. Insurers view organizations that conduct regular penetration testing more favorably, as it demonstrates a commitment to cybersecurity best practices and risk management, potentially leading to better coverage terms and premiums.