  In this paper, a novel cyber-insurance model design is proposed based on
system risk evaluation with smart technology applications. The cyber insurance
policy for power systems is tailored via cyber risk modeling, reliability
impact analysis, and insurance premium calculation. A stochastic Epidemic
Network Model is developed to evaluate the cyber risk by propagating
cyberattacks among graphical vulnerabilities. Smart technologies deployed in
risk modeling include smart monitoring and job thread assignment. Smart
monitoring boosts the substation availability against cyberattacks with
preventive and corrective measures. The job thread assignment solution reduces
the execution failures by distributing the control and monitoring tasks to
multiple threads. Reliability assessment is deployed to estimate load losses
convertible to monetary losses. These monetary losses would be shared through a
mutual insurance plan. To ensure a fair distribution of indemnity, a new
Shapley mutual insurance principle is devised. Effectiveness of the proposed
Shapley mutual insurance design is validated via case studies. The Shapley
premium is compared with existent premium designs. It is shown that the Shapley
premium has high indemnity levels closer to those of Tail Conditional
Expectation premium. Meanwhile, the Shapley premium is nearly as affordable as
the coalitional premium and keeps a relatively low insolvency probability.
