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Mortality improvement has been a common phenomenon since the 20th century, and the human longevity continues to prolong. Postretirement life receives a lot of attention, and modeling mortality rate...

Cyber risk refers to risk affecting information and technology assets of a corporation or government institution. As cyber risk management become important, insurance is one possible solution. However, lack of data and severe information asymmetries increase the difficulties in pricing-related insurance products. In this chapter, we discuss first-party insurance that indemnifies the loss when the insured encounters virus attack and provide pricing model for the policy using copula methodology. Simulation results show that model risk may exist in the distribution of server downtime hours and is minor in the distribution of incident frequency and number of personal computers (PCs) infected.

This paper introduces an option that has been provided by life insurance companies extensively but has not been discussed in much in the literature; the conversion option. By constructing a valuation model, we first confirm that the conversion option may have positive values. We further find that the value of this option highly depends on the difference of the expected and actual mortality pattern after the insured individual converts his/her policy. Meanwhile, considering the general trend of mortality improvement, we incorporate this trend by applying the Lee–Carter model, hoping to provide a reasonable and fair valuation of the conversion option.