Cyber security insurances are policies that organizations purchase to mitigate financial losses resulting from cyber-attacks. While this insurance helps manage various risks, it is like a quality assurance document for companies. Because; for an institution to receive this insurance, it must have taken basic cyber precautions in its IT infrastructure and should constantly be improving these measures. For many companies to get cyber insurance, there is a prerequisite to have a penetration test set by the insurers every year.
Penetration testing detects vulnerabilities in an organization's computer systems or network infrastructure.
It is a testing process that involves arranging a controlled attack to identify Penetration tests are an essential tool to detect system vulnerabilities, prevent security vulnerabilities, and strengthen protection measures against attacks.
1. Risk assessment: Penetration tests help an organization evaluate the effectiveness of existing security measures. Potential vulnerabilities and vulnerabilities are identified, and risks are assessed, and this information makes cybersecurity insurance affordable.
2. Premium determination: Insurance companies determine premiums based on an organization's risk profile. Penetration tests tell the insurance provider that cyber risk is being reviewed regularly and the risk is mitigated. If the organization's cybersecurity measures are stronger, the insurance premium is likely to drop.
3. Determining insurance coverage: Penetration testing helps better understand an organization's security situation. The insurance company may consider the test results and the level of security when determining the policy coverage through the customer statement. In this way, more favourable insurance coverage can be offered.
4. Elimination of deficiencies: Results from penetration tests reveal the organization's security vulnerabilities. These vulnerabilities can pose a potential threat to attackers. Based on the results of the penetration tests, the organization can take the necessary measures to increase the level of security, thereby reducing the risk of attack, i.e., financial loss covered by cyber insurance.
5. Response planning: Penetration tests help an organization evaluate how to respond in the event of an attack. Penetration testing contributes to the identification of crisis management and incident response strategies. With this data, companies can improve their own processes. The response procedure to be followed during an attack is an essential item in insurance assessment.