The Casualty Actuarial Society and the Society of Actuaries Publish Framework for Pricing and Managing Digital Asset Risk

As digital assets continue to reshape finance, so must cyber insurers protect customers at both micro and systematic levels. “A Framework for Digital Asset Risks with Insurance Applications,” released by the Casualty Actuarial Society and Society of Actuaries, provides actuaries a foundation for safeguarding the integrity and stability of the rapidly evolving digit asset landscape.

Besides offering a scientifically rigorous framework for quantifying cyber risks in the digital asset ecosystem, the report showcases frequency-severity models based on real loss data for pricing cyber risk in digit assets. The authors also deploy Monte Carlo simulation to estimate the tail risks that reveal practical insights for developing risk management strategies.

Since the use of digital assets will continue to grow, all actuaries will benefit from the education and insight the report provides.