Bootstrapping method in copula-based cyber insurance model
Date of Issue2012
College of Business (Nanyang Business School)
As an emerging sector in general insurance, cyber-insurance has become one of the most effective means in transferring the cyber security risk. One of the imminent issues in this field, however, is the accuracy in determining policy premiums. Practitioners and academics have developed various models over the years, the latest of which has adopted the currently new and popular methodology of copula, in attempts to price the premiums for cyber-insurance products. Even if those models are well developed, the prevalent issue of data paucity has significantly hindered the accuracy and validity of them. This study has addressed the specific issue of data paucity by incorporating new features such as bootstrapping technique and multicopula combination into the latest copula-based framework in pricing cyber-insurance products. Furthermore, this study has also attempted to provide limelight to future researches in developing better cyber-insurance pricing models.
Final Year Project (FYP)
Nanyang Technological University