Cyber insurance: the current situation and prospects of development

Abstract

The aim of the article is to analyze current trends in the development of cyber insurance. The following methods of scientific research were used in the preparation of the article: generalization, correlation analysis, comparative analysis. The authors analyze in detail the main trends in the spread of cybercrime. The correlation analysis between the number of registered cybercrimes in a particular country and its GDP, the number of business entities, indicated the lack of correlation between the studied indicators. It states that the most common types of cybercrime are: hacking, unauthorized access, accidental exposure, insider and physical theft. The sectoral analysis of the distribution of cybercrime has revealed a decrease in the share of financial companies while increasing the share of health care companies. It is noted that cyber insurance is one of the effective preventive measures that minimize the negative effects of cybercrime intervention. The article presents segmentation of the cyber insurance market by geography and size of insurance companies. The results of the analysis showed the dominance of US companies in the cyber insurance market. It is stated that the sectoral distribution of cybersecurity policy purchasers in general follows the trends of the sectoral distribution of cybercrime. The volume of cyber insurance, expenses of insured legal entities is analyzed. The main trends in the development of cyber insurance have been identified. The factors that hold back the development of cyber risk insurance have been identified. The main ones include the following: high level of information entropy in the process of cyber risk assessment, lack of a single standard for filling insurance services in the field of cyber insurance. It is noted that in the medium term the cyber insurance market is prospective for insurance companies. This is caused by the increasing scale of cyber threats and the costs associated with cyberattacks.

International Experience of Administration in the Insurance Area and Possibility of Its Application on Ukraine

“…These issues have repeatedly been the subject matter of research accomplished by scholars, who are constantly trying to form the most effective areas of reforming the administration in the field of insurance activity, including by highlighting the positive experience of foreign countries in this field (Dyba, 2016;Hrynchyshyn, Prokopiuk, 2017;Zolotarova, 2017;Kulyna, Farion, 2017;Kurmaiev, Seliverstova, Bondarenko, Husarevych, 2020 Similar government programs also exist in other countries. For example, in accordance with the "Strategy of Actions" on the five priority directions of development of the Republic of Uzbekistan in 2017-2021, wide reforms are being implemented in the national economy in order to improve living standards and create favorable conditions for the population.…”

Cybersecurity, cyber insurance and small-to-medium-sized enterprises: a systematic Review

“…Poor risk assessment may be possible because SMEs fail to effectively assess risk due to the difficulty in determining the impact of a loss (Strupczewski, 2021;P14, P17). On the insurer's side, it is difficult to assess the impact of a loss event, as this may vary among companies based on how large or small the company is, and the industry in which it operates (Marotta et al, 2017;Kurmaiev et al, 2020). It is therefore not surprising that many solutions attempt to address the challenge of risk assessment through innovation.…”