Real-Time Premium Adjustment Models for Cyber Insurance Using IoT Device Security Metrics

DOI

10.2991/978-94-6239-644-9_13How to use a DOI?

Keywords

Cyber Insurance; IoT Security Metrics; Real-Time Premium Adjustment; Dynamic Risk Assessment; Behavioral Cybersecurity

Abstract

The increasing integration of Internet of Things (IoT) devices into everyday life has expanded the cyber threat landscape, exposing both individuals and organizations to dynamic and evolving security risks. Traditional cyber insurance models, which rely on static risk assessments, often fail to account for the fluctuating security posture of IoT environments. This study investigates the development of real-time premium adjustment models that incorporate IoT device security metrics to create more accurate, responsive, and behavior-driven cyber insurance pricing frameworks. A mixed-methods approach was employed, combining quantitative data from 216 IoT devices and 209 survey respondents, along with qualitative insights from 54 semi-structured interviews involving IoT users and insurance professionals. Regression and ANOVA analyses reveal a significant relationship between real-time device metrics such as software update frequency, breach incidents, and response time and insurance premium fluctuations. Time-series analysis further confirms that high-security devices consistently experience lower premiums over time, while low-security devices incur rising costs. Thematic analysis of interview data highlights key concerns such as trust, data privacy, alert fatigue, and regulatory ambiguity. The findings suggest that real-time premium models can effectively incentivize better cybersecurity behavior but require transparent algorithms, ethical data practices, and regulatory support for widespread adoption. This study contributes a foundational framework for dynamic cyber insurance pricing and provides practical insights for insurers, policymakers, and technology stakeholders navigating the future of risk management in an IoT-driven world.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - M. Ganeshwar Kumar
AU  - Prachi Malgaonkar
PY  - 2026
DA  - 2026/04/19
TI  - Real-Time Premium Adjustment Models for Cyber Insurance Using IoT Device Security Metrics
BT  - Proceedings of the Global Innovation and Technology Summit “AAROHAN 3.0”_Engineering track (GITS-EAS 2025)
PB  - Atlantis Press
SP  - 154
EP  - 167
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6239-644-9_13
DO  - 10.2991/978-94-6239-644-9_13
ID  - Kumar2026
ER  -