A Framework for Cyber-Insurance Price and Product Design for Managing and Mitigating Security Risk in Small and Medium-Sized Enterprises

Abstract

Cybersecurity is considered a group of modern technical systems that protect information and maintain its confidentiality. Besides, the cybersecurity framework is aimed to protect internet users from any risks that may face them. Therefore, there is a concern of cyberinsurance by small and medium-sized enterprises to manage the risks but until recently, there has been no reliable evidence that what is the right premiums and it is still an open debate. This research aims to measure the efficiency of the copula methods to model and price cybersecurity risks. A framework for calculating prices for cyber-insurance products and an explanation of how such products are priced in an environment where breaches occur are discussed in detail.