# Aggregate Cyber-Risk Management in the IoT Age: Cautionary Statistics for (Re)Insurers and Likes

arXiv: https://arxiv.org/abs/2105.01792 · HTML: https://mlsanity.com/paper/2105.01792/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 4 May 2021.

## Built on by (most cited first, 1 of 1)

- [AI-Native Insurance for Agentic AI: Pricing, Underwriting, and End-to-End Automation](https://mlsanity.com/paper/2607.13230/) (2026)

## Abstract (arXiv)

In this paper, we provide (i) a rigorous general theory to elicit conditions on (tail-dependent) heavy-tailed cyber-risk distributions under which a risk management firm might find it (non)sustainable to provide aggregate cyber-risk coverage services for smart societies, and (ii)a real-data driven numerical study to validate claims made in theory assuming boundedly rational cyber-risk managers, alongside providing ideas to boost markets that aggregate dependent cyber-risks with heavy-tails.To the best of our knowledge, this is the only complete general theory till date on the feasibility of aggregate cyber-risk management.