Navigating cyber insurance : a systematic review of strategies for risk mitigation and challenges for stakeholders

Abstract

Background: Cybersecurity threats have become a pervasive concern in the digital age, necessitating effective risk management strategies. Cyber insurance, a growing industry, plays a pivotal role in this context. This systematic literature review aims to comprehensively assess the state of the art in cyber insurance risk mitigation approaches and identify the multifaceted challenges stakeholders face in this domain. Methods: To address the research questions, an extensive systematic literature review was conducted, encompassing scholarly articles, reports, and industry publications. The author employed established risk of bias assessment tools tailored to the study design and synthesized findings using a thematic synthesis methodology. Results: The review revealed that insurers have been actively exploring innovative risk mitigation approaches, including collaborative efforts, regulatory interventions, insurance-linked securities (ILS), professional assessments, and rapid response risk mitigation. These strategies enhance insurers' ability to manage cyber risks effectively. However, stakeholders face complex challenges such as elusive cyber threats, data scarcity, information asymmetry, and moral hazard. Discussion: The study discusses how these risk mitigation techniques can collectively address these challenges, fostering a more secure digital future. It highlights specific strategies to bridge the protection gap, address reinsurance capital limitations, mitigate moral hazard, facilitate premium setting, and estimate future cyber risks. Conclusion: This systematic literature review offers a comprehensive understanding of the dynamic field of cyber insurance. It contributes valuable insights to inform future research and industry practices, aiding in the effective management of cyber risks.