Next Article in Journal
Die Hard: Probability of Default and Soft Information
Next Article in Special Issue
A Multivariate Model to Quantify and Mitigate Cybersecurity Risk
Previous Article in Journal
Technical Analysis on the Bitcoin Market: Trading Opportunities or Investors’ Pitfall?
Open AccessArticle

Towards an Economic Cyber Loss Index for Parametric Cover Based on IT Security Indicator: A Preliminary Analysis

SCOR Reinsurance Company, CH-8022 Zürich, Switzerland
Risks 2020, 8(2), 45; https://doi.org/10.3390/risks8020045
Received: 27 January 2020 / Revised: 29 April 2020 / Accepted: 29 April 2020 / Published: 8 May 2020
(This article belongs to the Special Issue Cyber Risk and Security)
As cyber events have virtually no geographical limitations and can result in economic losses on a global scale, the assessment of return periods for such economic losses is currently debated among experts. The potential accumulation of consequential insurance losses due to intrusions or viruses is one of the major reasons why the (re-)insurance industry has limited risk appetite for cyber related risks. In order to increase the risk appetite for cyber risk and based on a first batch of data provided by Symantec, the goal of this article is to: Check if IT activity, i.e., the number of virus or intrusions being blocked by Norton on end-user computers could be used as an index for parametric covers that reinsurance companies could propose to their cedants; Look into the correlations of this IT activity across different regions, thereby confirming the absence of geographical limitations for cyber risk, and hence confirming the systemic nature of this risk. This first study on the Symantec dataset shows that a cyber index based on IT activity could be a useful tool to design parametric reinsurance product. View Full-Text
Keywords: correlation; time-series; cyber risk; insurance linked securities; parametric insurance correlation; time-series; cyber risk; insurance linked securities; parametric insurance
Show Figures

Figure 1

MDPI and ACS Style

Dal Moro, E. Towards an Economic Cyber Loss Index for Parametric Cover Based on IT Security Indicator: A Preliminary Analysis. Risks 2020, 8, 45. https://doi.org/10.3390/risks8020045

AMA Style

Dal Moro E. Towards an Economic Cyber Loss Index for Parametric Cover Based on IT Security Indicator: A Preliminary Analysis. Risks. 2020; 8(2):45. https://doi.org/10.3390/risks8020045

Chicago/Turabian Style

Dal Moro, Eric. 2020. "Towards an Economic Cyber Loss Index for Parametric Cover Based on IT Security Indicator: A Preliminary Analysis" Risks 8, no. 2: 45. https://doi.org/10.3390/risks8020045

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop