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Security Pricing as Enabler of Cyber-Insurance A First Look at Differentiated Pricing Markets

机译:安全定价作为网络保险的推动者<斜视>首先看差异化定价市场

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Despite the promising potential of network risk management services (e.g., cyber-insurance) to improve information security, their deployment is relatively scarce, primarily due to such service companies being unable to guarantee profitability. As a novel approach to making cyber-insurance services more viable, we explore a symbiotic relationship between security vendors (e.g., Symantec) capable of price differentiating their clients, and cyber-insurance agencies having possession of information related to the security investments of their clients. The goal of this relationship is to (i) allow security vendors to price differentiate their clients based on security investment information from insurance agencies, (ii) allow the vendors to make more profit than in homogeneous pricing settings, and (iii) subsequently transfer some of the extra profit to cyber-insurance agencies to make insurance services more viable. In this paper, we perform a theoretical study of a market for differentiated security product pricing, primarily with a view to ensuring that security vendors (SVs) make more profit in the differentiated pricing case as compared to the case of non-differentiated pricing. In order to practically realize such pricing markets, we propose novel and computationally efficient consumer differentiated pricing mechanisms for SVs based on (i) the market structure, (ii) the communication network structure of SV consumers captured via a consumer's Bonacich centrality in the network, and (iii) security investment amounts made by SV consumers. We validate our analytical model via extensive simulations conducted on practical SV client network topologies; main results show (through those simulations) that (a) a monopoly SV could improve its profit margin by upto approximate to 25 percent (based on the simulation setting) by accounting for clients' investment information and network locations, whereas in an oligopoly setting, SVs could improve their profit margins by upto approximate to 18 percent, and (b) differentiated security pricing mechanisms are fair among SV consumers with respect to the total investment made by a consumer. To the best of knowledge, the proposed differentiated pricing framework is the first of its kind in the security products domain, and is generally applicable to usecases beyond the one investigated in this work.
机译:尽管网络风险管理服务的有希望的潜力(例如,网络保险)来提高信息安全,但他们的部署相对稀缺,主要是由于这种服务公司无法保证盈利。作为一种新的方法,使网络保险服务更加可行,我们探讨了能够为客户提供区分的安全供应商(例如,赛门铁克)的共生关系,以及拥有与客户安全投资相关信息的网络保险机构。这种关系的目标是(i)允许安全供应商根据保险机构的安全投资信息为客户区分他们的客户,(ii)允许供应商比在同质定价环境中更好的利润,并随后转移一些对网络保险机构的额外利润使保险服务更加可行。在本文中,我们对差异化安全产品定价进行了一个理论研究,主要是为了确保安全供应商(SVS)与非差异化定价相比,在差异化定价案中赚取更多利润。为了实际上实现了此类定价市场,我们提出了基于(i)市场结构的SVS的新颖和计算有效的消费者差异化机制,(ii)通过网络中的消费者的Bonacich Centernality捕获的SV消费者的通信网络结构, (iii)SV消费者提出的安全投资金额。我们通过实际SV客户端网络拓扑上进行的广泛模拟验证了我们的分析模型;主要结果表明(通过这些模拟)(a)垄断SV可以通过考虑客户的投资信息和网络地点,在寡头垄断场所(以寡头垄断地点)计算到25%(基于模拟设定),以便在寡头垄断环境中提高到25%, SVS可以通过近似值提高其利润率,达到18%,(B)差异化的安全定价机制在SV消费者方面都有公平的消费者对消费者的总投资。据知识中,建议的差异化定价框架是其安全产品领域的第一个,并且通常适用于超出本工作中调查的useCases。

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