Speaker: Martin Eling (University of St. Gallen, Switzerland)
Title: Is Cyber Risk Insurable?
Field of study
What problem is your research trying to solve?
"The dark side of digitalization - cyber risk. The research question is whether these new types of risk are insurable."
What did your research find?
"We document a market failure when portfolios of cyber risk are constructed and are important for risk managers, insurance companies and policymakers."
Abstract: We use data on cyber losses and model the potential market equilibrium for cyber insurance to document a market failure when portfolios of cyber risk are constructed. This can be explained by the distinct properties of cyber risk, namely heavy tails, strong (tail) dependencies, high costs due to asymmetric information, and modelling risk. Our results help to explain why many insurance companies are reluctant to offer cyber insurance on a broad scale. We also discuss ways to overcome the market failure. Our analyses expand results from catastrophic insurance and have implications for corporate risk management and public policy.
More information, a link to the research and the upcoming seminar here.
It is planned to stream to our YouTube channel and record the seminar.
We are looking forward to seeing you!