We congratulate our colleague Kwangmin Jung on winning the AFIR-ERM Research Paper Prize 2019 for his paper «Extreme Cyber Losses: An Alternative Approach to Estimating Probable Maximum Loss for Data Breach Risk». A cyber disaster becomes more catastrophic, complex and rapidly evolving, hence one of the challenges for insurers and risk managers is to estimate the size of a next extreme loss possibly hitting many policyholders in other pools simultaneously. The paper suggests an alternative approach to estimating the potential extreme size of data breach loss by defining the probable maximum cyber loss (PMCL), leading to nearly seven times larger than the loss amount estimated by the recent literature with a widely used Pareto method. Are you concerned about how big the next extreme cyber loss would be? All details of this research you can find here.
Author: Andreina Zink
Date: 14. January 2020