Authors - Senaya Nurandhi Jayawickrama, Tithira Mojitha Ranasingha, Dineth Randika Kumaranayake, Udageeth Dias, Kavinga Yapa Abeywardena, Amila Nuwan Senarathne Abstract - The increased digitization of banking operations has increased the value of data assets while also exposing them to growing cyber risks, creating a need for effective risk management mechanisms. Cyber insurance is a risk transfer mechanism that enables organizations to mitigate financial losses by transferring cyber risks to third party insurers. However, in many emerging markets, including Sri Lanka, cyber insurance remains underdeveloped due to limitations in existing premium calculation models, as they lack transparency and fail to incorporate data asset valuation and relevant security parameters, resulting in inaccurate and unfair premiums. This study proposes a structured framework that integrates data asset valuation with premium calculation, while defining multiple insurance coverage categories to address financial losses arising from regulatory, operational and recovery risks. By incorporating data asset value, operational criticality and organizational security posture into the premium calculation process, the proposed models enhance the accuracy and fairness of premium values.
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