Economic and Legal Insights Into Cybersecurity Insurance
Mayur Jariwala · Advances in computational intelligence and robotics book series · 2025
Cybersecurity insurance is evolving due to rising cyber threats, regulatory shifts, and technological advancements. This chapter explores the economic, legal, and technological factors shaping cyber insurance in the AI era. AI-driven underwriting, predictive analytics, and blockchain innovations transform risk assessment, fraud detection, and claims processing. Legal frameworks such as GDPR, the EU AI Act, and cybersecurity liability laws shape policy structures and coverage disputes. Ethical concerns around AI bias, data privacy, and algorithmic transparency demand stricter oversight. Industry-specific insurance models cater to diverse sectors, while collaborative knowledge-sharing platforms enhance threat intelligence. Future developments include quantum-resilient policies, decentralized risk-sharing, and automated compliance tracking. Research must address AI governance, regulatory harmonization, and access to cyber insurance. As digital threats grow, adaptive, technology-driven solutions will define the effectiveness of cyber insurance as a risk management tool.