Abstract:
Cyber risks are as numerous as they are various in character, and their consequences are so fatal. Probably, no country in the world is entirely devoid of such risks. Therefore, this paper analyzes these risks by focusing on their nature and some associated rates. Also, this paper tries to find some insurance solutions for encountering such risks which increase over time, because of the technological developments in which humans live nowadays. Of these risks, the most significant one is cyber hackers. Due to the modernity of these risks, the expectation of frequency of such losses for insurance companies has an immense influence on the plans of these companies as well as the movement of insurance activity either partially or completely. Cyber risks are in themselves a big challenge for insurance companies, due to the special nature of such risks and the inability to determine the appropriate and accurate price of the documents covered. In other words, this paper makes an attempt to find a proposed model for pricing these risks, especially in the software industry in the Arab Republic of Egypt.
Key words: cyber insurance, risks, insurance, and software.