This paper discusses the adequacy of insurance for managing cyber risk. To this end, we extract 994 cases of cyber losses from an operational risk database and analyze their statistical properties. Based on the empirical results and recent literature, we investigate the insurability of cyber...

Paper I, "The Liability Regime of Insurance Pools and Its Impact on Pricing", addresses the pricing of insurance premiums for specific forms of risk sharing in the insurance industry. The implicit diversification effect from this risk sharing on the default risk is discussed in connection with a...