Cyber Insurance is an important business tool for managing residual cyber security risks which cannot be mitigated in a cost effectiveness manner. The cyber insurance industry is facing significant challenges due to the rapidly evolution of cyber attacks exploited by persistent cyber criminals monetising the vulnerabilities. The global and catastrophic nature of cyber attacks such as Mirai bonet, WannaCry Ransomware and NotPetya attack demonstrated the threat from cyber attacks to the global economy. In fact, the World Economic Forum rank cyber risk as the third most important risks facing the world economy.
Denny Wan (Principle Consultant of Security Express) is currently undertaking postgraduate research at Macquarie University in Sydney, Australia under an Australian Government Commonwealth Scholarship into cyber insurance pricing strategies. The research examines how applying cyber risks management disciplines to the insurance premium pricing model can improve the resiliency and sustainability of the cyber insurance industry.
This whitepaper co-authored with Petra Wildemann explores one such approach:
The incentive model underpinning the above pricing model is further explored in this co-authored whitepaper:
Petra is the Chair and Founder of the Swiss Cyber Think Tank and a qualified actuary for Life Insurance and Property & Casualty Insurance in Switzerland (SAV), Germany (DAV) and UK (IFoA Affiliate). Denny thanks Petra for her collaboration in this research effort.