In an effort to thwart the increasing amount of cyber-related crime, the Chubb Group of Insurance Companies is encouraging organizations to ramp up network security by offering a premium discount for its CyberSecurity by Chubb insurance product. The premium credit will be available to organizations that implement and regularly test their systems via the new best-practice penetration testing methods as defined by the National Institute of Standards and Technology (NIST).

"An organization's information is one of its most valuable assets," says Tracey Vispoli, Chubb's global financial fidelity manager. "From customer notification to lost sales to stock-price plummets, the costs of a data compromise can be staggering."

Data breach disclosure laws now in place in more than 30 states are further driving up the costs of a security breach, according to Chubb. "With cyber-security incidents doubling every year since 1995, regulators, shareholders, and customers expect organizations to protect their information and secure systems against attacks or compromise," says Vispoli. "The NIST standards incorporate state-of-the-practice security controls for information systems and a process to assess the effectiveness of those controls. Regular, ongoing testing is a critical component of any effective security program, and we believe organizations that effectively implement best-practice testing can reduce their risk of a security breach."