Cyber-Insurance: New Models to Quantify the Economic Impact of Digital Risks

Olivier LOPEZ * Co-porteur du projet « Cyber-insurance: actuarial modeling » (Fondation du Risque, Fonds AXA pour la Recherche, AXA GRM, Ensae), Sorbonne Université. Contact : olivier.lopez0@upmc.fr.

Florence PICARD ** Membre du Directoire, Fondation du Risque ; membre du Comité de direction, ILB ; responsable du groupe de travail Cyber Risk, Institut des actuaires. Contact : florencepicard@aol.com.

New risks arise from the digital transformation. With the increase of cyber threats, insurance contracts appear as fundamental tools to improve the resilience of society. While the cyber insurance market is expanding, quantification of the economic impact of this risk is still blurred. It requires sophisticated stochastic models - to capture the complexity of the involved phenomena and their high volatility, for example the accumulation risk - while taking the weakness of available data into account. In this article, we emphasize the difficulties to collect accurate data, and the impact of behavior of the agents on risk evaluation. We also mention potential methodological paths to overcome these issues.