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Cyber risk cost and management in IoT devices-linked health insurance

Author

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  • Yin-Yee Leong

    (Feng Chia University)

  • Yen-Chih Chen

    (Feng Chia University)

Abstract

Internet of things (IoT) devices lead to innovation trends in financial services. Real-world IoT applications certainly further the surge in new financial product design. In the insurance industry, companies can utilise data collected from all types of IoT-connected devices to more effectively determine premiums and provide better insurance products, known as IoT insurance. However, this has a downside: insurance companies might underestimate the possible cyber risks involved in these IoT insurance products. This study examines the potential cyber risks arising from the application of IoT devices-linked insurance. We consider the cyber risks in insurance product valuation and estimate the possible increase in cyber risk cost as more data are sourced from IoT devices. Our results contribute to IoT devices-linked health insurance development and improvement in related cyber risk management.

Suggested Citation

  • Yin-Yee Leong & Yen-Chih Chen, 2020. "Cyber risk cost and management in IoT devices-linked health insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(4), pages 737-759, October.
    • Handle: RePEc:pal:gpprii:v:45:y:2020:i:4:d:10.1057_s41288-020-00169-4
    DOI: 10.1057/s41288-020-00169-4
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    References listed on IDEAS

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    2. Alberto Sardi & Alessandro Rizzi & Enrico Sorano & Anna Guerrieri, 2021. "Cyber Risk in Health Facilities: A Systematic Literature Review," Papers 2102.04093, arXiv.org.
    3. Alberto Sardi & Alessandro Rizzi & Enrico Sorano & Anna Guerrieri, 2020. "Cyber Risk in Health Facilities: A Systematic Literature Review," Sustainability, MDPI, vol. 12(17), pages 1-16, August.

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