Cyber insurance

[drastizaveriParticipant]

The term cyber insurance is the talk of the industry today. Can someone please share the detailed insight into how can these insurance be priced or in other words how are the actuaries valuing the risk arising from a cyber crime like hacking?

[Mayank GoyalKeymaster]

DrastiZaveri wrote:

The term cyber insurance is the talk of the industry today. Can someone please share the detailed insight into how can these insurance be priced or in other words how are the actuaries valuing the risk arising from a cyber crime like hacking?

Here are some references which will literally make your day if you are looking to work in this industry

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1. [li]M. Eling and N. Loperfido. Data breaches: Goodness of fit, pricing, and risk measurement. Insurance: Mathematics and Economics, 75:126–136, 2017.[/li]
2. [li]M. Eling and W. Schnell. What we know about cyber risk and cyber risk insurance? The Journal of Risk Finance, 17(4):474–491, 2016.[/li]
3. [li]H. S. B. Herath and T. C. Herath. Copula based actuarial model for pricing cyber insurance policies. Insurance Markets and Companies: Analyses and Actuarial Computations, 2(1), 2011.[/li]
4. [li]P. Low. Insuring against cyber-attacks. Computer Fraud & Security, 2017(4):18–20, 2017.[/li]
5. [li]X. Maochao and H. Lei. Cybersecurity insurance: Modelling and pricing. Society of Actuaries, 2017.[/li]
6. [li]A. Marotta, F. Martinelli, S. Nanni, A. Orlando, and A. Yautsiukhin. Cyber-insurance survey. Computer Science Review, 2017.[/li]

[/ol]

Earlier, we tried to get that pricing right in TAC so we collected some material where you could have a look at. It need deep statistics and learning of networks among networks because underwriters take their time to understand the impact of risk.

Source: https://theactuarialclub.com/2019/01/28/to-understand-cyber-insurance-pricing/

Happy statistics!

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