The Evolution of Cyberinsurance
Ruperto P. Majuca, William Yurcik, Jay P. Kesan
Abstract
Cyberinsurance is a powerful tool to align market incentives toward improving Internet security. We trace the evolution of cyberinsurance from traditional insurance policies to early cyber-risk insurance policies to current comprehensive cyberinsurance products. We find that increasing Internet security risk in combination with the need for compliance with recent corporate legislation has contributed significantly to the demand for cyberinsurance. Cyberinsurance policies have become more comprehensive as insurers better understand the risk landscape and specific business needs. More specifically, cyberinsurers are addressing what used to be considered insurmountable problems (e.g., adverse selection/asymmetric information, moral hazard, etc.) that could lead to a failure of this market solution. Although some implementation issues remain, we suggest the future development of cyberinsurance will resolve these issues as evidenced by insurance solutions in other risk domains.
Create a lesson
Related papers
RedEvoAgent: Automatic Red-Teaming Agent with Experience-Driven Skill Evolution
Junjie Zhang, Hui Liu, Kecheng Chen et al.
Beyond F1: Evaluating Coverage and Failure Recovery in AI Model Security Scanners
Qianlong Lan, Vinothini Pandurangan, Anuj Kaul et al.
When Context Gets Root: Privilege Escalation in LLM Harnesses
Xingbang He, Yuanwei Chen, Yi Qian et al.
Low-ASR Backdoors: Exploiting Attack Success Rate Reduction and Attacker-Defender Asymmetry
Arham Riaz, Ting Yu
SPA: Securing Persistent LLM Agents Across Queries with Plan-First Information-Flow Control
Dylan Girrens, Guangjing Wang
From Security Events to Conflict States: A Three-layer Cyber Defense Scenario Model for Enhanced Cyber Situational Awareness
Miguel Requena Micó, Mario Fernandez-Tarraga, Daniel Díaz-López et al.