In the modern economy, where many businesses integrally depend on functioning IT systems and digital services, cyber insurance has emerged as one of the fastest-growing insurance lines. Likewise, the challenges for actuaries in adequately assessing, modelling, pricing, and managing this complex and ever-evolving risk are manifold. In this session, we will delve into key aspects of cyber insurance, extending beyond the basics.
In particular, we will discuss three topic areas with particular relevance to actuarial cyber (re)insurance practitioners:
Cyber Accumulation: Diversification and accumulation are integral parts of assessing cyber risk and understanding the overall exposure. Cyber comes with a unique set of challenges, where data scarcity may add an additional layer of complexity. We discuss different types of accumulation modelling approaches and possible data sources.
Risk Mitigation Services: Cyber insurance products are continuously being developed following an evolving market landscape. Risk mitigation services included in insurance products provide insureds with an additional value proposition and allow the insurer to benefit from synergies between offering risk transfer and pro-actively ensuring adequate risk assessment and risk mitigation. We present already existing solutions for the inclusion of pre- and post-incident services in both commercial and personal lines cyber insurance products, present ideas for additional initiatives, and discuss how such combinations of risk transfer and risk mitigation can be assessed from an actuarial perspective.
Parametric Cyber Insurance: Characteristics of cyber risk pose significant challenges to insurability, resulting in dangerous protection gaps. Parametric insurance products based on publicly observable indices can support swift recovery and may provide coverage for difficult-to-insure losses to ensure a holistic risk transfer in combination with indemnity-based solutions. We give an overview of the basic principles underlying parametric insurance and suitable applications in the context of cyber risk, introduce an actuarial modelling framework for assessing premiums and portfolio risk, and investigate the design of basis risk-optimal payment schemes.
Early-bird discount is available for bookings made by 23 September 2026.
Explore our website for more information and discover all our upcoming events. For more insights, updates, and a bit of actuarial fun, feel free to follow us on LinkedIn!
