Some Risk Analysis Problems in Cyber Insurance Economics

Abstract

Cyber threats affect all kinds of organisations with frequent and costly impacts worldwide. Cyber insurance products have recently emerged with the potential of lowering the impact of cyberspace risks. However, they have yet to mature. In this paper we present several risk analysis models that may facilitate the implementation and adoption of cyber insurance. These models, described in terms of influence diagrams and bi-agent influence diagrams, provide a framework for estimating the economic impact of cyber risks that may face insurers and insurees as well as calculating their optimal risk mitigation and transfer strategies.