Is Accumulation Risk In Cyber Systematically Underestimated?
“The purpose of this article is to highlight the importance of taking a holistic approach to cyber. In particular, we argue that actuarial modelling should not be viewed stand-alone, but rather as an integral part of an interconnected value chain with other processes such as cyber-risk assessment and cyber-claims settlement.” Lire
Building Resilience in Cybersecurity — An Artificial Lab Approach
“Using the lab, in numerical case studies, we identify two classes of measures to control systemic cyber risks: security- and topology-based interventions. We discuss the implications of our findings on selected real-world cybersecurity measures currently applied in the insurance and regulation practice or under discussion for future cyber risk control. To this end, we provide […]
Insurance and Enterprise: Cyber Insurance for Ransomware
“As businesses improved their resilience, cybercriminals adapted and ransoms escalated, calling insurability into question. Yet there remains little appetite for imposing restrictive conditionality in this highly competitive market. Instead, insurers have turned to governments to contain criminal threats and cushion catastrophic losses.” Lire
Modeling and Pricing Cyber Insurance — A Survey
“We distinguish three main types of cyber risks: idiosyncratic, systematic, and systemic cyber risks. While for idiosyncratic and systematic cyber risks, classical actuarial and financial mathematics appear to be well-suited, systemic cyber risks require more sophisticated approaches that capture both network and strategic interactions.” Lire
Cyber Security and Insurance
“Companies and law firms must have adequate insurance coverage to fill gaps and to meet company insurance objectives.” Lire
Do Auditors Consider Cybersecurity Insurance in Pricing Audits?
“We conclude that the purchase of cyber insurance is indicative of an overall higher risk profile, but that having that insurance after experiencing a breach and formalizing cyber risk oversight within the audit committee reduces auditors’ perceptions of risk.” “… in a world where algorithmic opacity has become a strategic tool for firms to escape accountability, regulators in the EU, […]
A Generalized Linear Mixed Model for Data Breaches and its Application in Cyber Insurance
“Estimations of model parameters are presented under Bayesian framework using a combination of Gibbs sampler and Metropolis-Hastings algorithm. Predictions and applications of the proposed model in enterprise risk management and cyber insurance rate filing are discussed.” Lire
Cyber Loss Model Risk Translates to Premium Mispricing and Risk Sensitivity
” Through this analysis we are able to address the question that, to the best of our knowledge, no other study has investigated in the context of cyber risk: is model risk present in cyber risk data, and how does is it translate into premium mispricing?” Lire