Challenges in Cyber Risk Insurance

This paper illustrates the main challenges identified in the literature on cyber risk assessment in order to provide possible solutions for the reduction of the gap between supply and demand of cyber insurance. The aim is to contribute to a better understanding in quantifying, managing and pricing cyber risk by means of: a deeper awareness of the economic consequences they produce; the introduction and validation of new actuarial techniques to allow insurers a more efficient management of this class of risks; the design of innovative insurance contracts and alternative ways of risk transfers to reduce the costs of insurance premiums and mitigate the economic impacts.