2022/08/18 by Kerstin Awiszus, Awiszus, Kerstin, Thomas Knispel +9
Earth and Planetary Sciences · Physics and Astronomy · #Complex Network Analysis Techniques #Earth Systems and Cosmic Evolution #FOS: Economics and business #FOS: Mathematics #Opinion Dynamics and Social Influence #Probability (math.PR) #Risk Management (q-fin.RM)
paper · pdf · doi:10.48550/arxiv.2209.07415
openalex publication_date 2022/08/18 · openalex created_date 2022/10/01 · openalex updated_date 2026/07/28
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.