Cyber insurance: the current situation and prospects of development

Petro Kurmaiev; Liudmyla Seliverstova; Olena Bondarenko; Nataliia Husarevych

doi:10.34069/AI/2020.28.04.8

Petro Kurmaiev Department of Finance, Accounting and Economic Security, Pavlo Tychyna Uman State Pedagogical University, Ukraine https://orcid.org/0000-0001-9464-0380
Liudmyla Seliverstova Department of Finance, Kyiv National University of Trade and Economics, Ukraine https://orcid.org/0000-0002-2231-0558
Olena Bondarenko Department of Marketing, Kyiv National University of Trade and Economics, Ukraine https://orcid.org/0000-0002-5990-2522
Nataliia Husarevych Department of Finance, Kyiv National University of Trade and Economics, Ukraine https://orcid.org/0000-0002-8266-8498

DOI: https://doi.org/10.34069/AI/2020.28.04.8

Keywords: cybercrime, cyber insurance, insurance market, cyber risk, sectoral analysis.

Abstract

The aim of the article is to analyze current trends in the development of cyber insurance. The following methods of scientific research were used in the preparation of the article: generalization, correlation analysis, comparative analysis. The authors analyze in detail the main trends in the spread of cybercrime. The correlation analysis between the number of registered cybercrimes in a particular country and its GDP, the number of business entities, indicated the lack of correlation between the studied indicators. It states that the most common types of cybercrime are: hacking, unauthorized access, accidental exposure, insider and physical theft. The sectoral analysis of the distribution of cybercrime has revealed a decrease in the share of financial companies while increasing the share of health care companies. It is noted that cyber insurance is one of the effective preventive measures that minimize the negative effects of cybercrime intervention. The article presents segmentation of the cyber insurance market by geography and size of insurance companies. The results of the analysis showed the dominance of US companies in the cyber insurance market. It is stated that the sectoral distribution of cybersecurity policy purchasers in general follows the trends of the sectoral distribution of cybercrime. The volume of cyber insurance, expenses of insured legal entities is analyzed. The main trends in the development of cyber insurance have been identified. The factors that hold back the development of cyber risk insurance have been identified. The main ones include the following: high level of information entropy in the process of cyber risk assessment, lack of a single standard for filling insurance services in the field of cyber insurance. It is noted that in the medium term the cyber insurance market is prospective for insurance companies. This is caused by the increasing scale of cyber threats and the costs associated with cyberattacks.

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Author Biographies

Petro Kurmaiev, Department of Finance, Accounting and Economic Security, Pavlo Tychyna Uman State Pedagogical University, Ukraine

D.Sc.habil. (Economics), Assistant Professor in Economics, Department of Finance, Accounting and Economic Security, Pavlo Tychyna Uman State Pedagogical University, Ukraine

Liudmyla Seliverstova, Department of Finance, Kyiv National University of Trade and Economics, Ukraine

D.Sc. habil. (Economics), Professor, Department of Finance, Kyiv National University of Trade and Economics, Ukraine

Olena Bondarenko, Department of Marketing, Kyiv National University of Trade and Economics, Ukraine

D.Sc.habil. (Economics), Professor, Department of Marketing, Kyiv National University of Trade and Economics, Ukraine

Nataliia Husarevych, Department of Finance, Kyiv National University of Trade and Economics, Ukraine

PhD (Economics), Assistant Professor in Economics, Department of Finance, Kyiv National University of Trade and Economics, Ukraine

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