Aegis A Novel Cyber-Insurance Model

Recent works on Internet risk management have proposed the idea of cyber-insurance to eliminate risks due to security threats, which cannot be tackled through traditional means such as by using antivirus and antivirus softwares. In reality, an Internet user faces risks due to security attacks as well as risks due to non-security related failures (e.g., reliability faults in the form of hardware crash, buffer overflow, etc.). These risk types are often indistinguishable by a naive user. However, a cyber-insurance agency would most likely insure risks only due to security attacks. In this case, it becomes a challenge for an Internet user to choose the right type of cyber-insurance contract as traditional optimal contracts, i.e., contracts for security attacks only, might prove to be sub-optimal for himself. In this paper, we address the problem of analyzing cyber-insurance solutions when a user faces risks due to both, security as well as nonsecurity related failures. We propose Aegis,...

• Type: Journal
• Year: 2011
• Where: GAMESEC
• Authors: Ranjan Pal, Leana Golubchik, Konstantinos Psounis
• Keywords: Cyber Insurance, Game Theory, GAMESEC 2011, Internet Risk Management, Optimal Contracts