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Third ACM Conference on Data and Application Security and Privacy
February 20, 2013, San Antonio, TX, USA




Insured Access:
An Approach to Ad-hoc
Information Sharing for
Virtual Organizations

        Naoki Tanaka†,‡,∗ , Marianne Winslett†,∗,
        Adam J. Lee◦, David K. Y. Yau⋄,∗, Feng Bao‡
      † Department of Computer Science, University of Illinois at Urbana-Champaign
         ‡ Cryptography & Security Department, Institute for Infocomm Research
                           ∗ Advanced Digital Sciences Center
               ◦ Department of Computer Science, University of Pittsburgh
                  ⋄ Department of Computer Science, Purdue University
This presentation proposes insurance-based
ad-hoc information sharing scheme




Insured Access
                                                            18

                      Pricing                               17
                                                                                                consumer1
                                                                                                consumer2
                                                                                                consumer3




                                      Average of Capitals
                                                                                                consumer4
                        and                                 16

                                                            15
                                                                                                consumer5
                                                                                                consumer6
                                                                                                consumer7
                                                                                                consumer8
                 Purchase Decisions                         14

                                                            13
                                                                                                consumer9
                                                                                               consumer10


                                                            12

                                                            11
                                                                 0   10    20   30   40   50    60   70   80    90 100
                                                                          Insurer’s Risk Aversion Index alpha


                                                            Simulation Results
                                                                                                                         2
Traditional access control grants
access for original purposes
         Bob                      Alice
Information Consumer      Information Producer




                       Map of USA
                       Information


         Alice prepared a map of USA for Bob
          Bob has access to the map of USA
                                                 3
Traditional access control grants
access for original purposes
                          Alice                   Carol
                  Information Producer    Information Consumer




                       Map of Singapore
                         Information


   Alice prepared a map of Singapore for Carol
    Carol has access to the map of Singapore
                                                                 4
Can traditional access control deal
with ad-hoc information access?
         Bob                           Alice                   Carol
Information Consumer           Information Producer    Information Consumer




      Hey Alice, I came up
     with a good idea to use        Map of Singapore
     the map of Singapore!            Information


    Alice prepared a map of Singapore for Carol
Access rights are assigned according to
the original purpose of information
         Bob                          Alice                   Carol
Information Consumer          Information Producer    Information Consumer




          Sorry Bob, but I
         cannot release it.        Map of Singapore
        (I don’t want to be          Information
           blamed later…)

    Alice prepared a map of Singapore for Carol
  Information access for other purposes is denied
                                                                             6
Traditional authorization methods
are inflexible
         Bob                   Alice                  Carol
Information Consumer   Information Producer   Information Consumer




     Traditional methods try to eliminate risk

        We need a more flexible method to
        consider benefits while bounding risk
                                                                     7
Risk-based access control tries to
mitigate problems
   MITRE JASON report proposed a
   risk-based access control approach
                  Use risk tokens to
                  purchase access rights
Risk tokens                                         Information


  1 token = one-day, soft-copy-only access to one document
            by the average Secret-cleared individual
Price = expected value of damages due to the access

 Total amount of allocated tokens < tolerable risk
                                                                  8
Current risk-based access control
has its own problems


               Use risk tokens to
               purchase access rights
Risk tokens                                  Information




Cannot control the worst-case aggregate damages

Doesn’t distinguish between good and bad risk-takers


                                                           9
Insured access encourages
information sharing
                           Innis
                          Insurer

                                    Insurance policy




                                                            Information
            Bob                                       Alice
   Information Consumer                       Information Producer
                                                                          10
Insured access encourages
information sharing
                           Innis
                          Insurer

                                    Insurance policy


1. Request policy




                                                            Information
            Bob                                       Alice
   Information Consumer                       Information Producer
                                                                          11
Insured access encourages
information sharing
                            Innis
                           Insurer

                                           Insurance policy

2. Quote price
   or deny access                    Use premium principles




                                                                   Information
             Bob                                             Alice
    Information Consumer                             Information Producer
                                                                                 12
Insured access encourages
information sharing
                           Innis
                          Insurer

                                      Insurance policy


3. Pay premium
                              Decide considering benefits & costs




                                                              Information
            Bob                                         Alice
   Information Consumer                         Information Producer
                                                                            13
Insured access encourages
  information sharing
                                Innis
                               Insurer




  4. Receive policy




Insurance policy
                                                       Information
                 Bob                             Alice
        Information Consumer             Information Producer
                                                                     14
Insured access encourages
  information sharing
                                Innis
                               Insurer




                       5. Request access,
                          show policy

Insurance policy
                                                          Information
                 Bob                                Alice
        Information Consumer                Information Producer
                                                                        15
Insured access encourages
  information sharing
                                Innis
                               Insurer




  No reason to deny because producers won’t lose anything

                        6. Provide access

Insurance policy
                                                          Information
                 Bob                                Alice
        Information Consumer                Information Producer
                                                                        16
Insured access encourages
  information sharing
                                Innis
                               Insurer


                                         7. File claim
                                            against policy




Insurance policy
                                                        Information
                 Bob                              Alice
        Information Consumer              Information Producer
                                                                      17
Insured access encourages
  information sharing
                                Innis
                               Insurer



                                         8. Pay claim
       Producers get reimbursed for
       the exact amount



Insurance policy
                                                        Information
                 Bob                              Alice
        Information Consumer              Information Producer
                                                                      18
Insurer calculates premium (policy price)
using premium principle
                          Innis
                         Insurer



     Risk distribution             Premium (Policy price)




                                           Insurance policy

Risk distribution represents
the total amount of claims
                                                            19
Principle of Equivalent Utility is the most
widely adopted approach


  Principle of Equivalent Utility


 uI: insurer’s utility function
 wI: insurer’s current capital
 P: premium (policy price)
 X: random variable representing the total amount of claims

     Insurer is equally happy whether or not
     the policy is issued (indifferent)
                                                              20
Exponential Principle is derived when
exponential utility function is used
When exponential utility function


   risk aversion index
is used…

Exponential Principle
 π: premium principle
 X: random variable representing the total amount of claims
 mX(α): moment generating function of X around α

       Exponential Principle is widely used
       because of its favorable properties
                                                              21
Consumers consider both benefits
and costs of accessing information
Consumers purchase policies only when
the following inequality is met



 u: consumer’s utility function
 w: consumer’s current capital
 P: premium (policy price)
 Y: random variable representing the consumer’s expected
 additional value (revenue)

  Traditional actuarial methods don’t consider
  this kind of tradeoff
                                                           22
We can derive the maximum premium
the consumer is willing to pay
When exponential utility function is used…




 P+: maximum premium (policy price) the consumer is willing
 to pay
 mY(αc): moment generating function of Y around αc
 Y: random variable representing the consumer’s expected
 additional value (revenue)
 αc: consumer’s risk aversion index

 If the quoted price is less than P+, the consumer
 buys the policy and accesses information
                                                              23
Bonus-malus system rewards good
risk-takers and punishes bad ones
New insureds enter at step 2      Dutch system




       Bad risk-takers         Good risk-takers
       Many claims             No claims
       Incur penalty           Enjoy discount
                                                24
Discrete event simulations model a map
sharing scenario



                          Sensitivity is reflected in parameters of
                          risk (claim size) distributions
10 consumers   10 producers




                                                                      25
Discrete event simulations model a map
sharing scenario




10 consumers   10 producers   Each insured access is independent

     Arrival of requests is modeled by a separate
     Poisson process for each consumer
  Inter-arrival time follows exponential distribution
  A consumer chooses a producer a uniformly at random
  from the producers it has not purchased previously
                                                                   26
Discrete event simulations model a map
sharing scenario




10 consumers   10 producers

For each purchased policy
  1 claim arrival & 1 benefit arrival
     Arrival time follows exponential distribution

  Risk (claim size) & Benefit follow Normal Distribution

                                                           27
More risk averse insurer results in smaller
capitals because of smaller # of transactions
  Varied the insurer’s risk aversion index α, and examined
  how α affects capitals at the end of simulations
            Each principal has $10 as its initial capital
                                   160
                                                                           insurer
                                   140                                  consumers
                                                                                all
             Average of Capitals




                                   120
                                   100
                                    80
                                    60
                                    40
                                    20
                                     0
                                         0   10     20   30   40   50    60   70   80   90 100
                                                  Insurer’s Risk Aversion Index alpha




Large α → Small # of transactions → Small capitals
                                                                                                 28
With BM, consumers who make smaller
number of claims have larger capitals
              Consumer ID                    1                           2     3                          4          5       6        7   8   9              10
              Probability of causing claims 0.1                         0.2   0.3                        0.4        0.5     0.6      0.7 0.8 0.9              1
                       14                                                                           18
                                                     consumer1                                                                            consumer1
                      13.5                           consumer2                                      17                                    consumer2
                                                     consumer3                                                                            consumer3
Average of Capitals




                                                                              Average of Capitals
                       13                            consumer4                                                                            consumer4
                                                                                                    16
                                                     consumer5                                                                            consumer5
                      12.5                           consumer6                                                                            consumer6
                                                     consumer7                                      15                                    consumer7
                       12                            consumer8                                                                            consumer8
                                                     consumer9                                      14                                    consumer9
                      11.5                          consumer10                                                                           consumer10
                                                                                                    13
                       11
                      10.5                                                                          12

                       10                                                                           11
                             0   10 20 30 40 50 60 70 80 90 100                                          0     10    20   30   40   50    60   70   80    90 100
                                  Insurer’s Risk Aversion Index alpha                                               Insurer’s Risk Aversion Index alpha

                                 Without Bonus-Malus                                                                With Bonus-Malus
                                                                                             steps are updated every 5 time periods

Good risk-takers (small # of claims) → Large capitals
                                                                                                                                                                   29
We need to estimate distributions
to realize Insured Access


1. Request policy
2. Quote price
   or deny access   Can we estimate distributions?
3. Pay premium                                  7. File claim against policy
4. Receive policy                               8. Pay claim


                     5. Request access, show policy

                           6. Provide access




                                                                           30
This presentation proposed Insured Access and
evaluated its effectiveness through simulations
Proposed Insured Access
that considers benefits while
bounding risk
   Showed how to calculate
   premium and how consumers
   decide to buy policies
                                                                  18
                                                                                                      consumer1
                                                                  17                                  consumer2
                                                                                                      consumer3


       Simulation results confirmed the




                                            Average of Capitals
                                                                  16                                  consumer4
                                                                                                      consumer5
                                                                                                      consumer6
                                                                  15                                  consumer7
                                                                                                      consumer8
                                                                  14                                  consumer9


       effectiveness of Insured Access                            13

                                                                  12
                                                                                                     consumer10




                                                                  11
                                                                       0   10    20   30   40   50    60   70   80    90 100
                                                                                Insurer’s Risk Aversion Index alpha




                                   Email: tanaka5@illinois.edu
                 Questions?        Twitter: @naokitnk
                                                                                                                        31

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Insured Access: An Approach to Ad-hoc Information Sharing for Virtual Organizations

  • 1. Third ACM Conference on Data and Application Security and Privacy February 20, 2013, San Antonio, TX, USA Insured Access: An Approach to Ad-hoc Information Sharing for Virtual Organizations Naoki Tanaka†,‡,∗ , Marianne Winslett†,∗, Adam J. Lee◦, David K. Y. Yau⋄,∗, Feng Bao‡ † Department of Computer Science, University of Illinois at Urbana-Champaign ‡ Cryptography & Security Department, Institute for Infocomm Research ∗ Advanced Digital Sciences Center ◦ Department of Computer Science, University of Pittsburgh ⋄ Department of Computer Science, Purdue University
  • 2. This presentation proposes insurance-based ad-hoc information sharing scheme Insured Access 18 Pricing 17 consumer1 consumer2 consumer3 Average of Capitals consumer4 and 16 15 consumer5 consumer6 consumer7 consumer8 Purchase Decisions 14 13 consumer9 consumer10 12 11 0 10 20 30 40 50 60 70 80 90 100 Insurer’s Risk Aversion Index alpha Simulation Results 2
  • 3. Traditional access control grants access for original purposes Bob Alice Information Consumer Information Producer Map of USA Information Alice prepared a map of USA for Bob Bob has access to the map of USA 3
  • 4. Traditional access control grants access for original purposes Alice Carol Information Producer Information Consumer Map of Singapore Information Alice prepared a map of Singapore for Carol Carol has access to the map of Singapore 4
  • 5. Can traditional access control deal with ad-hoc information access? Bob Alice Carol Information Consumer Information Producer Information Consumer Hey Alice, I came up with a good idea to use Map of Singapore the map of Singapore! Information Alice prepared a map of Singapore for Carol
  • 6. Access rights are assigned according to the original purpose of information Bob Alice Carol Information Consumer Information Producer Information Consumer Sorry Bob, but I cannot release it. Map of Singapore (I don’t want to be Information blamed later…) Alice prepared a map of Singapore for Carol Information access for other purposes is denied 6
  • 7. Traditional authorization methods are inflexible Bob Alice Carol Information Consumer Information Producer Information Consumer Traditional methods try to eliminate risk We need a more flexible method to consider benefits while bounding risk 7
  • 8. Risk-based access control tries to mitigate problems MITRE JASON report proposed a risk-based access control approach Use risk tokens to purchase access rights Risk tokens Information 1 token = one-day, soft-copy-only access to one document by the average Secret-cleared individual Price = expected value of damages due to the access Total amount of allocated tokens < tolerable risk 8
  • 9. Current risk-based access control has its own problems Use risk tokens to purchase access rights Risk tokens Information Cannot control the worst-case aggregate damages Doesn’t distinguish between good and bad risk-takers 9
  • 10. Insured access encourages information sharing Innis Insurer Insurance policy Information Bob Alice Information Consumer Information Producer 10
  • 11. Insured access encourages information sharing Innis Insurer Insurance policy 1. Request policy Information Bob Alice Information Consumer Information Producer 11
  • 12. Insured access encourages information sharing Innis Insurer Insurance policy 2. Quote price or deny access Use premium principles Information Bob Alice Information Consumer Information Producer 12
  • 13. Insured access encourages information sharing Innis Insurer Insurance policy 3. Pay premium Decide considering benefits & costs Information Bob Alice Information Consumer Information Producer 13
  • 14. Insured access encourages information sharing Innis Insurer 4. Receive policy Insurance policy Information Bob Alice Information Consumer Information Producer 14
  • 15. Insured access encourages information sharing Innis Insurer 5. Request access, show policy Insurance policy Information Bob Alice Information Consumer Information Producer 15
  • 16. Insured access encourages information sharing Innis Insurer No reason to deny because producers won’t lose anything 6. Provide access Insurance policy Information Bob Alice Information Consumer Information Producer 16
  • 17. Insured access encourages information sharing Innis Insurer 7. File claim against policy Insurance policy Information Bob Alice Information Consumer Information Producer 17
  • 18. Insured access encourages information sharing Innis Insurer 8. Pay claim Producers get reimbursed for the exact amount Insurance policy Information Bob Alice Information Consumer Information Producer 18
  • 19. Insurer calculates premium (policy price) using premium principle Innis Insurer Risk distribution Premium (Policy price) Insurance policy Risk distribution represents the total amount of claims 19
  • 20. Principle of Equivalent Utility is the most widely adopted approach Principle of Equivalent Utility uI: insurer’s utility function wI: insurer’s current capital P: premium (policy price) X: random variable representing the total amount of claims Insurer is equally happy whether or not the policy is issued (indifferent) 20
  • 21. Exponential Principle is derived when exponential utility function is used When exponential utility function risk aversion index is used… Exponential Principle π: premium principle X: random variable representing the total amount of claims mX(α): moment generating function of X around α Exponential Principle is widely used because of its favorable properties 21
  • 22. Consumers consider both benefits and costs of accessing information Consumers purchase policies only when the following inequality is met u: consumer’s utility function w: consumer’s current capital P: premium (policy price) Y: random variable representing the consumer’s expected additional value (revenue) Traditional actuarial methods don’t consider this kind of tradeoff 22
  • 23. We can derive the maximum premium the consumer is willing to pay When exponential utility function is used… P+: maximum premium (policy price) the consumer is willing to pay mY(αc): moment generating function of Y around αc Y: random variable representing the consumer’s expected additional value (revenue) αc: consumer’s risk aversion index If the quoted price is less than P+, the consumer buys the policy and accesses information 23
  • 24. Bonus-malus system rewards good risk-takers and punishes bad ones New insureds enter at step 2 Dutch system Bad risk-takers Good risk-takers Many claims No claims Incur penalty Enjoy discount 24
  • 25. Discrete event simulations model a map sharing scenario Sensitivity is reflected in parameters of risk (claim size) distributions 10 consumers 10 producers 25
  • 26. Discrete event simulations model a map sharing scenario 10 consumers 10 producers Each insured access is independent Arrival of requests is modeled by a separate Poisson process for each consumer Inter-arrival time follows exponential distribution A consumer chooses a producer a uniformly at random from the producers it has not purchased previously 26
  • 27. Discrete event simulations model a map sharing scenario 10 consumers 10 producers For each purchased policy 1 claim arrival & 1 benefit arrival Arrival time follows exponential distribution Risk (claim size) & Benefit follow Normal Distribution 27
  • 28. More risk averse insurer results in smaller capitals because of smaller # of transactions Varied the insurer’s risk aversion index α, and examined how α affects capitals at the end of simulations Each principal has $10 as its initial capital 160 insurer 140 consumers all Average of Capitals 120 100 80 60 40 20 0 0 10 20 30 40 50 60 70 80 90 100 Insurer’s Risk Aversion Index alpha Large α → Small # of transactions → Small capitals 28
  • 29. With BM, consumers who make smaller number of claims have larger capitals Consumer ID 1 2 3 4 5 6 7 8 9 10 Probability of causing claims 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 14 18 consumer1 consumer1 13.5 consumer2 17 consumer2 consumer3 consumer3 Average of Capitals Average of Capitals 13 consumer4 consumer4 16 consumer5 consumer5 12.5 consumer6 consumer6 consumer7 15 consumer7 12 consumer8 consumer8 consumer9 14 consumer9 11.5 consumer10 consumer10 13 11 10.5 12 10 11 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 Insurer’s Risk Aversion Index alpha Insurer’s Risk Aversion Index alpha Without Bonus-Malus With Bonus-Malus steps are updated every 5 time periods Good risk-takers (small # of claims) → Large capitals 29
  • 30. We need to estimate distributions to realize Insured Access 1. Request policy 2. Quote price or deny access Can we estimate distributions? 3. Pay premium 7. File claim against policy 4. Receive policy 8. Pay claim 5. Request access, show policy 6. Provide access 30
  • 31. This presentation proposed Insured Access and evaluated its effectiveness through simulations Proposed Insured Access that considers benefits while bounding risk Showed how to calculate premium and how consumers decide to buy policies 18 consumer1 17 consumer2 consumer3 Simulation results confirmed the Average of Capitals 16 consumer4 consumer5 consumer6 15 consumer7 consumer8 14 consumer9 effectiveness of Insured Access 13 12 consumer10 11 0 10 20 30 40 50 60 70 80 90 100 Insurer’s Risk Aversion Index alpha Email: tanaka5@illinois.edu Questions? Twitter: @naokitnk 31