Growth in the Perception of Cyber Risk: Evidence from U.S. P&C Insurers

David M. Pooser (), Mark J. Browne () and Oleksandra Arkhangelska ()
Additional contact information
David M. Pooser: St. John’s University
Mark J. Browne: St. John’s University
Oleksandra Arkhangelska: St. John’s University

The Geneva Papers on Risk and Insurance - Issues and Practice, 2018, vol. 43, issue 2, No 3, 208-223

Abstract: Abstract The perception of cyber risk has increased in the economy and especially in insurance firms. Using data from publicly traded U.S. property–casualty (P&C) insurers, we examine the trend in cyber risk identification from 2006 to 2015, as well as firms’ characteristics related to cyber risk perception. Roughly one-quarter of our sample identified cyber risk as a material risk factor in 2006, and this group of our sample grew to include substantially all insurers by 2013. The firms that were “early adopters” of cyber risk identification tend to be the smaller, more highly leveraged and higher growth firms. These firms are also more concentrated in their line of business portfolio and use less external reinsurance. This evidence may suggest that the early identifiers of cyber risk were the most sensitive to potential disruption based on their size or firm risk.

Keywords: cyber risk; risk perception; emerging risk (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41288-017-0077-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:gpprii:v:43:y:2018:i:2:d:10.1057_s41288-017-0077-9

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

DOI: 10.1057/s41288-017-0077-9

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().