Insurability of Cyber Risk: An Empirical Analysis

Item Type Journal paper
Abstract

This paper discusses the adequacy of insurance for managing cyber risk. To this end, we extract 994 cases of cyber losses from an operational risk database and analyse their statistical properties. Based on the empirical results and recent literature, we investigate the insurability of cyber risk by systematically reviewing the set of criteria introduced by Berliner (1982). Our findings emphasise the distinct characteristics of cyber risks compared with other operational risks and bring to light significant problems resulting from highly interrelated losses, lack of data and severe information asymmetries. These problems hinder the development of a sustainable cyber insurance market. We finish by discussing how cyber risk exposure may be better managed and make several sug-gestions for future research.

Authors Biener, Christian; Eling, Martin & Wirfs, Jan Hendrik
Journal or Publication Title Geneva Papers on Risk and Insurance: Issues and Practice
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 1 January 2015
Publisher Palgrave Macmillan
Place of Publication Basingstoke
Volume 40
Number 1
Page Range 131-158
Number of Pages 28
ISSN 1018-5895
Publisher DOI 10.1057/gpp.2014.19
Depositing User Prof. Dr. Christian Biener
Date Deposited 07 Jan 2015 17:00
Last Modified 31 May 2021 10:46
URI: https://www.alexandria.unisg.ch/publications/238242

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Citation

Biener, Christian; Eling, Martin & Wirfs, Jan Hendrik (2015) Insurability of Cyber Risk: An Empirical Analysis. Geneva Papers on Risk and Insurance: Issues and Practice, 40 (1). 131-158. ISSN 1018-5895

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https://www.alexandria.unisg.ch/id/eprint/238242
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