CAS Releases Comprehensive Guide to Cyber Risk Exposures

The Casualty Actuarial Society has co-sponsored a new comprehensive guide to cyber risk exposures for actuaries, insurance companies and anyone involved in pricing cyber risk. "Exposure Measures for Pricing and Analyzing the Risks in Cyber Insurance," by Michael A. Bean, FCAS, CERA, FCIA, FSA, Ph.D., provides insight into parameters for cyber risk exposure and explores why cyber liability poses such a unique problem for pricing risk.

The paper evaluates potential exposure measures based on a set of criteria, which includes ease of calculation, ability to audit the calculation, strength of relationship to losses, and stability over the period of insurance coverage as well as concerns over privacy laws and regulatory requirements. It concludes with recommendations for the different types of exposure measures.

The CAS co-sponsored the paper with the Society of Actuaries. The paper is the second in the CAS Research Paper series. CAS Research Papers are funded, peer-reviewed, in-depth works focusing on important topics within property-casualty actuarial practice. These papers give CAS members access to relevant information and resources applicable to their work. Funding for CAS Research Papers comes from CAS member dues, individual grants and other sources. For additional information, visit the CAS Research Papers page.