| Sumario: | The authors discuss why there has been little growth in the cyber-insurance market. Cyber-insurance contracts are offered to corporations to minimize liability and costs in theft of data or damage of data. The article mentions the difference between the structure of a cyber-insurance contract and its use by information technology managers, including off-contract behavior. The resulting information asymmetry between customers and providers causing inefficiency for which customers pay. Lack of claim data, the relatively small size of the market and overpricing are mentioned as well as the author's belief that the structural market difficulties could be resolved if secondary loss were included in contracts.
|
|---|