Suchergebnisse

AbstractSelling insurance gives insurers an incentive to manage insured risks. The "insurance-as-governance" literature demonstrates that insurers often make insurance conditional on ex ante risk reduction or mitigation. But insurance governs in support of enterprise, not security for its own sake. Tight underwriting inhibits enterprise—not only for insured businesses but also for the business of insurance. This paper highlights ex post loss reduction as a form of insurance-based governance. Drawing on interviews with industry insiders, we explore how insurers addressed the evolving problems of moral hazard, uncertainty and correlated losses since the 1990s. We find that cyber insurance developed sophisticated remedies to contain liabilities and quickly restore affected IT systems, but largely left security decisions to the insured. This facilitated enterprise in the short run but undermined security in the longer term: funding and expediting ransom payments encourages further attacks. 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.

Insurance, in general, is a financial contract between the one buying the insurance (also known as the policyholder or insured) and the one providing insurance (known as insurance carrier or insurer). The contract, known as the insurance policy, typically states that the policyholder will pay a regular insurance premium in exchange for a financial compensation, also known as indemnification, in the event of a loss defined in the insurance policy. Insurance is used to manage risks by transferring them to the insurer, and cyber-insurance in particular deals with cyber risks covering direct and indirect damages caused by cyberattacks. The cyber-insurance market is still growing and has been receiving broader interest from research communities and government bodies over the years. This paper provides an overview of cyber-insurance, novel models proposed throughout the years and future challenges to be addressed for cyber-insurance to become a key component of an organisation's and household's cyber risk management approach.

Insurance, in general, is a financial contract between the one buying the insurance (also known as the policyholder or insured) and the one providing insurance (known as insurance carrier or insurer). The contract, known as the insurance policy, typically states that the policyholder will pay a regular insurance premium in exchange for a financial compensation, also known as indemnification, in the event of a loss defined in the insurance policy. Insurance is used to manage risks by transferring them to the insurer, and cyber-insurance in particular deals with cyber risks covering direct and indirect damages caused by cyberattacks. The cyber-insurance market is still growing and has been receiving broader interest from research communities and government bodies over the years. This paper provides an overview of cyber-insurance, novel models proposed throughout the years and future challenges to be addressed for cyber-insurance to become a key component of an organisation's and household's cyber risk management approach.