Sciweavers

HICSS
2007
IEEE

Insuring Big Losses Due to Security Breaches through Insurance: A Business Model

13 years 10 months ago
Insuring Big Losses Due to Security Breaches through Insurance: A Business Model
Security breaches deter e-commerce activities. Organizations spend millions of dollars on security appliances to make online transactions more secure. Nonetheless, a new virus or a clever hacker can easily compromise these deterrents and cause losses of millions of dollars annually. To reduce the impact of such losses, e-risk insurance is a viable complement to the security devices. Currently, e-risk insurance is in its developmental stage and small claim coverage is only available. In this paper, we provide a framework, for insurance companies to duly accept large e-risk. Splitting a large risk across layers reduces the overall variance of the loss. Also in case of a contingency the loss indemnification is shared. The inputs to the proposed model are the risk transfer proportion, overloading for premium, expected return on capital and undistributed risk at each layer. The model outputs the optimal number of layers in which the risk needs to be spilt by the insurance company and the i...
Arunabha Mukhopadhyay, Samir Chatterjee, Rahul Roy
Added 02 Jun 2010
Updated 02 Jun 2010
Type Conference
Year 2007
Where HICSS
Authors Arunabha Mukhopadhyay, Samir Chatterjee, Rahul Roy, Debashis Saha, Ambuj Mahanti, Samir K. Sadhukhan
Comments (0)