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Kshetri, Nir
Telecommunications policy, 09/2020, Volume: 44, Issue: 8Journal Article
The cyber-insurance (CI) market is at a nascent stage. This paper investigates how the contexts provided by formal and informal institutions affect the development of the CI industry. It highlights the nature, origin, and implications of CI-related institutions and provides insights into the mechanisms and forces that can lead to institutional changes. It offers an explanation as to how different institutional pillars related to CI progressively evolve and reinforce one another. Such a mechanism is likely to influence a range of demand and supply side factors and create a system that can accelerate the growth of the CI industry and market. The paper also investigates how contradictions generated by CI, the formation of dense networks and changing power dynamics can trigger regulative normative and cognitive changes. Since the current analysis of the causes and consequences of institutions and institutional change is mainly concerned with more established economic sectors, this paper is expected to provide insights into institutions surrounding to this new and rapidly evolving industry. •The cyber-insurance industry is at a nascent stage but is rapidly growing.•Institutional pillars related to cyber-insurance are progressively evolving and reinforcing one another.•Various contradictions associated with cyber-insurance are bringing institutional changes.•Process and technological innovations are likely to change institutions related to cyber-insurance.
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