Cyber Loss Distribution Fitting: A General Framework towards Cyber Bonds and Their Pricing Models

Motivated by the considerable amount of losses in (finance) industry caused every year fast growing number malicious cyber events and need an insurance against such losses, we propose a general framework bond, whose main purpose is to insure (compensate) attack. Based on database publicly available events, determine loss distribution parameters use them numerically simulate bond price, yield, other characteristics. We also study two approaches coupon calculation.