Insurance versus digital harm: a content analysis of home and cyber insurance policies in the USA and UK

• DOI: 10.1093/cybsec/tyae031
• Publication Date: 2025-01-17T13:06:41Z
• Authors: Rachiyta Jain; Temima Hrle; Daniel W Woods
• Keywords: Digital content

Abstract The adoption of digital technology creates the potential for new harms. Given that risk prevention solutions are imperfect, individuals may wish to transfer an insurer. It is unclear whether existing insurance policies cover these harms, or specialized consumer cyber products available. We address this research gap by conducting a content analysis 50 policies, 32 in USA and 18 UK. Our 26 home reveals insurers typically exclude perils (losses caused computer viruses, hacking, attacks), but include coverage assets (devices downloaded data) impacted conventional perils. A minority affirmatively such as identity theft social media defamation. 24 identifies 6 core generally covered: attack, data breach, ransomware, online fraud, cyberbullying, theft. Finally, pricing information from 21 specialist cost between $20 $150. One insurer’s actuarial calculations suggest expected losses range $2 (online fraud) $9 (computer attack). These findings can help users form strategies manage risk.