We are pleased to share with you our new DetraNote on Cyber incident reports: extrapolating severity using neural networks
published by our Actuarial Consultants, Justin Kher and Hugo Rapior, and our Scientific Advisor, Olivier Lopez.
Due to its emerging nature, cyber risk is a field in which very few data exist when it comes to calibrating models for the severity of such events. This makes the task of actuaries particularly challenging regarding pricing or claim management. In the present note, we present a general methodology to process text data using neural networks, and how it can be used to determine the severity of a cyber incident when this information is missing. This methodology is illustrated on a public benchmark database. It can be used either to augment database, by adding some claim incidents to historical databases, from reported incident whose cost is unknown. It can also be used to quickly evaluate the severity of a cyber claim just after its occurrence.
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.