AI-Driven Cyber Risk Assessment and Insurance Models
Rising cyber risks require intelligent, flexible and transparent risk management solutions. In this paper, we introduced an AI enabled framework for cyber risk assessment and insurance modeling for the age of cloud computing, which incorporates transparent AI, real-time threat intelligence, and federated learning to tackle the issues of scalability, interpretability, and data privacy. The model is capable of modelling the dynamic pricing and automated underwriting process by utilizing contextual threat information and policyholder’s claims records. The transparency of decision-making process also guarantees that regulatory requirements are met. Empirical tests across different industries show that the concert prediction accuracy, risk profiling, and operational efficiency improve through this model, indicating that the model is robust and it is applicable in the pragmatic insurance ecosystem.