Biblio

Cyber insurance is a viable method for cyber risk transfer. However, the cyber insurance faces critical challenges, the most important of which is lack of statistical data. In this paper, we proposed an incentive model considering monitoring signals for cybersecurity information haring based on the principal-agent theory. We studied the effect of monitoring signals on increasing the rationality of the incentive contract and reducing moral hazard in the process of cybersecurity information sharing, and analyzed factors influencing the effectiveness of the incentive contract. We show that by introducing monitoring signals, the insurer can collect more information about the effort level of the insured, and encourage the insured to share cybersecurity information based on the information sharing output and monitoring signals of the effort level, which can not only reduce the blindness of incentive to the insured in the process of cybersecurity information sharing, but also reduce moral hazard.