What is the role of penetration testing in the cyber insurance underwriting process?

Penetration testing is often recommended or required for businesses applying for cyber insurance because it helps identify vulnerabilities in their systems and networks that could potentially be exploited by hackers. By conducting penetration testing, businesses can proactively discover and address security weaknesses, reducing the likelihood of successful cyber attacks. Insurance providers often view organizations that conduct regular penetration testing more favorably as they demonstrate a commitment to security and risk mitigation, which can lead to more favorable insurance coverage terms and premiums.