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'Is cyber risk insurable?'
Event details of ASMF Seminar: Martin Eling (University of St. Gallen)
Date
28 February 2025
Time
12:30 -13:30
Room
5.22

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.

Speaker

Martin Eling (University of St. Gallen)

Roeterseilandcampus - building E

Room 5.22
Roetersstraat 11
1018 WB Amsterdam