Cyber risk management: a new challenge for actuarial mathematics

A specific kind of insurance that is emerging within the domain of cyber-systems is that of cyber-insurance. Cyber-insurance is the transfer of financial risk associated with network and computer incidents to a third party. Insurance companies are increasingly offering such policies, in particular in the USA, but also in Europe. The emerging trends in cyber insurance raise a number of unique challenges and force actuaries to reconsider how to think about underwriting, pricing and aggregation risk. Aim of this contribution is to offer a review of the recent literature on cyber risk management in the actuarial field. Moreover, basing on the most significant results in IT domain, we outline possible synergies between the two lines of research.