We are pleased to share with you our new Detra Note on "Modeling accumulation scenarios in cyber risk".
In this work, we consider a simple way to model accumulation episodes (i.e., large number of claims occurring in a short amount of time) in the context of cyber risk. This provides a generic way to design stochastic scenarios measuring the impact of such an event on an insurance portfolio. A particular attention is devoted to providing a way to model network effects (contagion between actors connected with each other) while producing a model needing relatively few data to be calibrated. Illustrations of this method are performed to determine the impact of different behaviors of the policyholders and of the insurance company on the spread of the cyber epidemic.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.