2023-2024 Seminars

Zoom Link for the Fall Semester 2023

https://osu.zoom.us/j/95548356683?pwd=a0hJMTgwbzlYeFpycGlnUTJ0RjM2Zz09

Meeting ID: 955 4835 6683

Password: 330496

Abstracts

Speaker: Maochao Xu, Illinois State University

Title:  Multivariate Cyber Risks: Quantification and Dependence 

Abstract: Cyber risk has emerged as a significant threat in recent years, with potential consequences including exposure of sensitive information, identity fraud, and financial losses. Quantifying cyber risk is critical for effective risk management and underwriting in the insurance industry. However, due to the complex nature of cyber risks, assessing joint cyber risk is a significant challenge, particularly concerning network topology and risk propagation. This talk presents a novel approach to quantifying multivariate cyber risks from a micro-level perspective. We will also explore dependence-related questions, including the nature of dependence among cyber risks and how to measure it. We shed light on these interesting questions using the newly developed L-hop model. Additionally, we discuss how our approach can add value to the industry practice of cyber risk quantification and pricing.

Short bio: Dr. Maochao Xu is a Professor in the Department of Mathematics at Illinois State University. In addition to his academic role, he serves as a Cyber Risk Advisor for CloudCover Inc. and a Cyber Insurance Advisor for Rankiteo LTD. Dr. Xu also provides advisory and consultancy services in cyber insurance to various industry companies. His research focuses on cyber insurance, statistical modeling, and risk analysis, with his work being published in prestigious journals and receiving numerous awards, including the 2019 Best Paper Award from the SOA.

Speaker: Runhuan Feng, Tsinghua University 

Title: Crypto-Based and Distributed Insurance

Abstract: It is fairly common in developed economies that a small set of insurers with large capitalization often account for the majority of their insurance markets. While tight regulations of the insurance industry are well-intended to protect the interests of policyholders and ensure market stability, the legal compliance and capital requirements create prohibitively high barriers that prevent retail investors or small companies from entering the market, further exacerbating the consolidation of the market. The advancement of distributed ledger technology has enabled new models to transfer risks from policyholders to crypto capital market. There has been little to no previous study on the underpinning theory of such new mechanisms. We propose a new theoretical framework for distributed insurance, where risks and rewards can be spread in a large distributed network of retail investors, as opposed to the traditional practice of risk concentrations on insurers. Our findings show that distributed risk sharing can significantly reduce the cost of coverage, improve capital efficiency while meeting the needs for limited liabilities and common investment principles for retail investors.