INSURANCE AGAINST CYBER SECURITY RISKS OF BUSINESS ENTITIES IN THE MODERN INFORMATION SPACE

Abstract

The rapid digitalization of all spheres and areas of life across the globe, the transition of companies to remote work, the further rapid increase in the number of Internet users have made cyber risk a serious threat to information security of businesses entities around the world. The impact of these general trends has been exacerbated by the coronavirus pandemic. At the same time, there is an evolution in the environment of cyber risks, new types are emerging due to the improvement of criminal technology by hackers. The threat of financial losses from these new types of cyber risks puts insurance of cyber security risks of business entities at the forefront of the global insurance market. The purpose of this article is to study the preconditions for the formation of the cyber risk insurance market, to identify the most typical cyber risks, to systematize the sources of losses due to cyber-attacks; to identify problems in the development of the cyber risk insurance market and tools to intensify the activities of insurance companies in insuring cyber security risks of business entities. The methodological basis of the study is formed by the fundamental principles of information economy, insurance theory, cyber security, theoretical and applied studies of domestic and foreign scientists, which study the development of the world economy in the conditions of global spread of information technology and artificial intelligence. The research has been conducted using general scientific and special methods of scientific knowledge: scientific abstraction, analysis, synthesis of induction, deduction – to formulate the theoretical and methodological basis of the study; historical method – for periodization of stages of emergence and development of cyber risks; graphic – to display visually individual provisions of the study; abstract-logical – for theoretical generalization and formation of conclusions. It has been established that the risks insurance while the use of artificial intelligence in the activities of economic entities is an effective tool that allows both to stimulate the implementation of measures that enhance the cyber security of an enterprise and to compensate for losses from a cyber-threat that has already been implemented and which could not be prevented. Thus, cyber insurance is a specific, fast-growing segment of the general market of insurance services, which, based on the basic principles of insurance, develops completely new innovative approaches and solutions.