Modeling and pricing cyber insurance - Idiosyncratic, systematic, and systemic risks
- The paper provides a comprehensive overview of modeling and pricing cyber insurance and includes clear and easily understandable explanations of the underlying mathematical concepts. 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. In the context of pricing cyber insurance policies, issues of interdependence arise for both systematic and systemic cyber risks; classical actuarial valuation needs to be extended to include more complex methods, such as concepts of risk-neutral valuation and (set-valued) monetary risk measures.
| Author: | Kerstin AwiszusORCiD, Thomas KnispelORCiDGND, Irina PennerGND, Gregor SvindlandORCiDGND, Alexander VoßORCiD, Stefan WeberORCiD |
|---|---|
| URN: | urn:nbn:de:bsz:960-opus4-24447 |
| DOI: | https://doi.org/10.25968/opus-2444 |
| DOI original: | https://doi.org/10.1007/s13385-023-00341-9 |
| ISSN: | 2190-9741 |
| Parent Title (English): | European Actuarial Journal |
| Document Type: | Article |
| Language: | English |
| Year of Completion: | 2023 |
| Publishing Institution: | Hochschule Hannover |
| Release Date: | 2023/02/10 |
| Tag: | Cyber Insurance; Cyber Risks; Idiosyncratic Risk; Systematic Risk |
| GND Keyword: | Cyber-Versicherung; Risiko; Versicherung |
| Page Number: | 53 |
| Institutes: | Fakultät IV - Wirtschaft und Informatik |
| DDC classes: | 360 Soziale Probleme, Sozialdienste, Versicherungen |
| 650 Management | |
| Licence (German): |  Creative Commons - CC BY - Namensnennung 4.0 International |
