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The evolution of cyber-insurance industry and market: An institutional analysis

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  • Kshetri, Nir

Abstract

The cyber-insurance (CI) market is at a nascent stage. This paper investigates how the contexts provided by formal and informal institutions affect the development of the CI industry. It highlights the nature, origin, and implications of CI-related institutions and provides insights into the mechanisms and forces that can lead to institutional changes. It offers an explanation as to how different institutional pillars related to CI progressively evolve and reinforce one another. Such a mechanism is likely to influence a range of demand and supply side factors and create a system that can accelerate the growth of the CI industry and market. The paper also investigates how contradictions generated by CI, the formation of dense networks and changing power dynamics can trigger regulative normative and cognitive changes. Since the current analysis of the causes and consequences of institutions and institutional change is mainly concerned with more established economic sectors, this paper is expected to provide insights into institutions surrounding to this new and rapidly evolving industry.

Suggested Citation

  • Kshetri, Nir, 2020. "The evolution of cyber-insurance industry and market: An institutional analysis," Telecommunications Policy, Elsevier, vol. 44(8).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:8:s0308596120300999
    DOI: 10.1016/j.telpol.2020.102007
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    References listed on IDEAS

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    Cited by:

    1. Caroline Hillairet & Olivier Lopez & Louise d'Oultremont & Brieuc Spoorenberg, 2022. "Cyber contagion: impact of the network structure on the losses of an insurance portfolio," Post-Print hal-03388840, HAL.
    2. Camélia Radu & Nadia Smaili, 2022. "Board Gender Diversity and Corporate Response to Cyber Risk: Evidence from Cybersecurity Related Disclosure," Journal of Business Ethics, Springer, vol. 177(2), pages 351-374, May.
    3. Alessandro Mazzoccoli & Maurizio Naldi, 2021. "Optimal Investment in Cyber-Security under Cyber Insurance for a Multi-Branch Firm," Risks, MDPI, vol. 9(1), pages 1-28, January.
    4. Caroline Hillairet & Olivier Lopez & Louise d'Oultremont & Brieuc Spoorenberg, 2021. "Cyber contagion: impact of the network structure on the losses of an insurance portfolio," Working Papers hal-03388840, HAL.
    5. Tatar, Unal & Nussbaum, Brian & Gokce, Yasir & Keskin, Omer F., 2021. "Digital force majeure: The Mondelez case, insurance, and the (un)certainty of attribution in cyberattacks," Business Horizons, Elsevier, vol. 64(6), pages 775-785.
    6. Hillairet, Caroline & Lopez, Olivier & d'Oultremont, Louise & Spoorenberg, Brieuc, 2022. "Cyber-contagion model with network structure applied to insurance," Insurance: Mathematics and Economics, Elsevier, vol. 107(C), pages 88-101.
    7. Xie, Haipeng & Sun, Xiaotian & Fu, Wei & Chen, Chen & Bie, Zhaohong, 2023. "Risk management for integrated power and natural gas systems against extreme weather: A coalitional insurance contract approach," Energy, Elsevier, vol. 263(PB).
    8. Meng Sun & Yi Lu, 2022. "A Generalized Linear Mixed Model for Data Breaches and Its Application in Cyber Insurance," Risks, MDPI, vol. 10(12), pages 1-23, November.

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