L. V. Ballestra, V. D'Amato, P. Fersini, S. Forte, F. Greco
{"title":"Pricing Cyber Insurance: A Geospatial Statistical Approach","authors":"L. V. Ballestra, V. D'Amato, P. Fersini, S. Forte, F. Greco","doi":"10.1002/asmb.2891","DOIUrl":null,"url":null,"abstract":"<p>Cyberspace is a dynamic ecosystem consisting of interconnected data, devices, and individuals, with multiple network layers comprising identifiable nodes. Location-based information can significantly improve cyber resilience decision-making and facilitate the development of innovative cyber risk pricing tools. This article is based on a methodology that uses company geospatial data to accurately estimate the number of expected losses arising from cyberattacks. Our approach aims to build and compare statistical spatial models that allow pricing cyber policies more effectively than traditional non-spatial methods by incorporating all available data. By accounting for spatial dependence, we can assess the risk of data breaches and contribute to the design of more efficient cyber risk policies for the insurance market.</p>","PeriodicalId":55495,"journal":{"name":"Applied Stochastic Models in Business and Industry","volume":"40 5","pages":"1365-1376"},"PeriodicalIF":1.3000,"publicationDate":"2024-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/asmb.2891","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Applied Stochastic Models in Business and Industry","FirstCategoryId":"100","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/asmb.2891","RegionNum":4,"RegionCategory":"数学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MATHEMATICS, INTERDISCIPLINARY APPLICATIONS","Score":null,"Total":0}
引用次数: 0
Abstract
Cyberspace is a dynamic ecosystem consisting of interconnected data, devices, and individuals, with multiple network layers comprising identifiable nodes. Location-based information can significantly improve cyber resilience decision-making and facilitate the development of innovative cyber risk pricing tools. This article is based on a methodology that uses company geospatial data to accurately estimate the number of expected losses arising from cyberattacks. Our approach aims to build and compare statistical spatial models that allow pricing cyber policies more effectively than traditional non-spatial methods by incorporating all available data. By accounting for spatial dependence, we can assess the risk of data breaches and contribute to the design of more efficient cyber risk policies for the insurance market.
期刊介绍:
ASMBI - Applied Stochastic Models in Business and Industry (formerly Applied Stochastic Models and Data Analysis) was first published in 1985, publishing contributions in the interface between stochastic modelling, data analysis and their applications in business, finance, insurance, management and production. In 2007 ASMBI became the official journal of the International Society for Business and Industrial Statistics (www.isbis.org). The main objective is to publish papers, both technical and practical, presenting new results which solve real-life problems or have great potential in doing so. Mathematical rigour, innovative stochastic modelling and sound applications are the key ingredients of papers to be published, after a very selective review process.
The journal is very open to new ideas, like Data Science and Big Data stemming from problems in business and industry or uncertainty quantification in engineering, as well as more traditional ones, like reliability, quality control, design of experiments, managerial processes, supply chains and inventories, insurance, econometrics, financial modelling (provided the papers are related to real problems). The journal is interested also in papers addressing the effects of business and industrial decisions on the environment, healthcare, social life. State-of-the art computational methods are very welcome as well, when combined with sound applications and innovative models.