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Insurance Pricing and Refund Sustainability for Cloud Outages

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Economics of Grids, Clouds, Systems, and Services (GECON 2017)

Part of the book series: Lecture Notes in Computer Science ((LNCCN,volume 10537))

Abstract

Cloud outages may cause heavy economic losses for customers, who may ask the cloud provider for compensation. Cloud providers may therefore wish to insure themselves against that risk. Considering a scenario where outages take place according to a Poisson process and their duration follows a generalized Pareto model, we provide formulas to properly set the insurance premium under three measures of outage severity: number of outages, number of long outages, unavailability. We also assess the sustainability of refunds, by setting thresholds on unit refund per damaging events.

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Author information

Authors and Affiliations

  1. Department of Economics, Roma Tre University of Rome, Via Silvio d’Amico 77, 00154, Rome, Italy

    Loretta Mastroeni

  2. Department of Civil Engineering and Computer Science, University of Rome Tor Vergata, Via del Politecnico 1, 00133, Roma, Italy

    Maurizio Naldi

Authors
  1. Loretta Mastroeni
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  2. Maurizio Naldi
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Correspondence to Maurizio Naldi .

Editor information

Editors and Affiliations

  1. UPPA, LIUPPA laboratory, UFR Sciences et Techniques, Pau, France

    Congduc Pham

  2. Seoul National University, Seoul, Korea (Republic of)

    Jörn Altmann

  3. Department of Computer Science, Universidad de Zaragoza, Zaragoza, Spain

    José Ángel Bañares

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Mastroeni, L., Naldi, M. (2017). Insurance Pricing and Refund Sustainability for Cloud Outages. In: Pham, C., Altmann, J., Bañares, J. (eds) Economics of Grids, Clouds, Systems, and Services. GECON 2017. Lecture Notes in Computer Science(), vol 10537. Springer, Cham. https://doi.org/10.1007/978-3-319-68066-8_1

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  • DOI: https://doi.org/10.1007/978-3-319-68066-8_1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-68065-1

  • Online ISBN: 978-3-319-68066-8

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