IUCRC Planning Grant University of Michigan: Cyber and Terrorism Insurance Studies (CATIS) Center

The Cyber and Terrorism Insurance Studies (CATIS) Center addresses the growing risks posed by cyber threats and terrorism, which can cause devastating financial and operational disruptions. Despite the increasing frequency and severity of cyber incidents and terrorism-related events, the insurance industry faces challenges including inconsistent risk assessments, limited data-sharing frameworks, and a shortage of professionals equipped to manage these evolving risks. CATIS brings together leading universities, cyber and terrorism insurance carriers, reinsurers, brokers, risk modelers, data providers, insureds, cybersecurity vendors, and policymakers to develop innovative research, tools, and educational programs that can strengthen the cyber and terrorism insurance markets. By improving risk modeling and sharing critical data, the Center assists businesses and government in anticipating and managing catastrophic risks. Additionally, the CATIS Center prepares new generations of professionals through workforce development initiatives, ensuring the insurance and cybersecurity industries have the expertise needed to navigate emerging challenges. With planning grant support from the Industry-University Cooperative Research Centers (IUCRC) program, the CATIS Center is a three-site collaboration, where each site contributes expertise in cyber risk modeling, terrorism risk analysis, and insurance. The Center's research focuses on developing artificial intelligence (AI)-driven risk modeling techniques, refining definitions of cyber and terrorism-related catastrophic events for insurance and reinsurance markets, and exploring the impact of cybersecurity controls and counter-terrorism measures on risk reduction. The Center also links with industry partners to enhance data-sharing methods, standardize underwriting practices for emerging risks like AI liability, and establish guidelines for pricing and managing catastrophic cyber risks. These efforts can lead to a stronger, more resilient insurance industry, providing businesses and policymakers with better tools to assess, mitigate, and insure against cyber and terrorism-related threats. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.