THE APPLICATION OF NON-MARKOV MODEL ON THE DETERMINATION OF CYBERSECURITY INSURANCE RISK PREMIUM FOR SEVERAL NETWORK TOPOLOGIES

• Main Author: Maharani Benardi, Rashiekavanya
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65280
• Institution: Institut Teknologi Bandung

With the increase in internet penetration rates in Indonesia, coupled with an increase in the amount of data stored digitally, there is an increasing risk of cyberattacks that can cause enormous losses for companies and consumers. The high risk of cyber attacks, large losses to individuals and corporate agencies, and the lack of cyber insurance products have caused the market for cyber insurance products to remain very large in Indonesia. But on the other hand, this relatively new cyber insurance product has several obstacles, one of which is in determining the premium risks. The objective of this final project is to find out the flow of the virus spread and the chances of being infected with a computer virus for a particular network system, and then to determine the most effective network topology to be used by the company in minimizing the risk of infection and losses from cyber attacks, financial loss models, and cybersecurity insurance risk premiums. The cyber insurance model uses a Non-Markov model with a Weibull distribution approach, and the Monte Carlo simulation is used to determine the standard deviation risk premium and equivalent utility risk premium.