Cyber insurance is getting harder, more expensive, to secure

As ransomware attacks, data breaches, and system compromises continue to escalate, cyber insurance has become a must-have safety net for businesses. But insurers aren’t just handing out policies anymore — they want proof that you're serious about cybersecurity.

One of the strongest ways to demonstrate this? Penetration testing.

• According to SecurityBrief Australia, the average breach cost in Australia has climbed to AUD $4.26 million— a 27% jump since 2020. It’s no wonder insurance providers are tightening their requirements.
• As per the Tenable’s "Old Habits Die Hard" report, the average Australian organization can proactively defend against only58% of the cyberattacks they face. This leaves a 42% gap where attacks bypass preventive controls, forcing organizations to reactively respond to incidents rather than stopping them outright — often at a much higher cost and risk.

Insurance Providers Tightening Requirements

Cyber insurance providers are raising the bar. They no longer accept simple checklists and demand solid proof that your business can handle today’s cyber threats. Penetration testing provides that proof by showing you’re finding and fixing weaknesses before hackers can exploit them.

Industry reports from Marsh McLennan and Allianz Commercial note that insurers are pushing for controls like incident response plans, with penetration testing being a key way to verify these measures work.

Put simply: If you’re not testing your defenses, insurers might assume you don’t have any.

Penetration Testing = Lower Insurance Premiums

Here’s where the smart business move comes in: Companies that conduct regular penetration testing often qualify for lower premiums.

When insurers see strong, proactive security measures, they adjust your risk rating — and lower your costs.

It’s a win-win:

• Reduce your breach risk
• Pay less for protection.

Proactive security isn't just smart — it's profitable.

What happens if you skip Cyber Insurance?

No cyber insurance? You’re walking a financial tightrope. A single breach could cost millions in:

• Legal claims
• Regulatory fines
• Data recovery
• Loss of customer trust

Without coverage, small to medium businesses in particular can be wiped out — or face serious, lasting damage to reputation and operations.

Having cyber insurance backed by continuous penetration testing gives you resilience — and a fighting chance to recover fast when things go wrong.

Continuous Pen Testing: Why one-offs aren’t enough

The threat landscape doesn’t sit still — and neither should your defenses. Regular penetration testing helps you:

• Catch new vulnerabilities
• Stay compliant with evolving standards
• Prove your security posture to insurers (and customers)

Ongoing testing signals to insurers that you're not just checking a box — you're building real cyber resilience. The payoff? Better protection, lower premiums, and a stronger business.

Want to strengthen your defenses and your insurance application?

At Cyber Node, we help businesses like yours turn penetration testing into a competitive advantage. Our certified experts simulate real-world attacks to uncover hidden risks and deliver actionable fixes — helping you meet (and exceed) insurer requirements.

Ready to get started? Email us at sales@cybernode.au or visit cybernode.au to schedule your next penetration test.