Critical infrastructure owners and operators want to minimize their cyber risk and expenditures on cybersecurity. The insurance industry has been quantitatively assessing risk for hundreds of years in order to minimize risk and maximize profits. To achieve these goals, insurers continuously gather statistical data to improve their predictions, incentivize their clients\u27 investment in self-protection and periodically refine their models to improve the accuracy of risk estimates. This paper presents a framework which incorporates the operating principles of the insurance industry in order to provide quantitative estimates of cyber risk. The framework implements optimization techniques to suggest levels of investment for both cybersecurity and insurance for critical infrastructure owners and operators. This analysis can be used to quantitatively formulate strategies to minimize cyber risk
