Analysis of Cyber Risk Challenges and Insurance Mechanisms

DOI

10.2991/978-2-38476-585-0_83How to use a DOI?

Keywords

Cyber Risk; Cyber Insurance; Risk Transfer

Abstract

As the pace of digitalization accelerates, cyber risks such as data breaches, ransomware, and system outages have become significant threats to businesses and society. However, traditional insurance mechanisms provide inadequate coverage against these risks, making cyber insurance an emerging tool for risk management. This paper systematically summarizes the definitions, characteristics, and classifications of cyber risks and insurance based on a review of relevant literature and focuses on exploring the core pathways through which insurance mechanisms address cyber risks, namely risk transfer, risk prevention and control, and industry collaboration. The study points out that the current insurance market faces multiple obstacles. On the one hand, product design and risk suitability are inadequate, making it difficult to cover emerging risks, and ambiguous exclusion clauses lead to claims disputes. Additionally, industry operational mechanisms are constrained, with insufficient actuarial data and information asymmetry exacerbating pricing challenges and adverse selection. Finally, external environmental constraints are significant, with insufficient risk awareness among enterprises leading to low insurance uptake, and cross-border data sovereignty conflicts impacting claims execution. This study aims to provide references for the insurance industry and policymakers to promote the insurance market’s role in safeguarding cybersecurity.

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.

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TY  - CONF
AU  - Luojia Ping
PY  - 2026
DA  - 2026/06/18
TI  - Analysis of Cyber Risk Challenges and Insurance Mechanisms
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 736
EP  - 743
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_83
DO  - 10.2991/978-2-38476-585-0_83
ID  - Ping2026
ER  -