Consumers want more insurance help with their cyber woes, and potential cyber woes. The why is easy. From automobiles to interconnected homes, just about every aspect of people’s lives are impacted by technology, and that technology is a sieve and easy for hackers to access.
Take automobiles for example. Asaf Ashkenazi of the software company Inside Secure said hackers can use connectivity to access private information and can even use it to steal the car. “The worst-case scenario is that they can completely take over and control anything in your car, from the brakes to the steering wheel,” he said. “The scariest scenario is that you're driving and they make your car crash.”
Then there’s the loss of personal records. The Identity Theft Resource Center’s 2018 End of Year Data Breach Report said 447 million consumers had their personal records compromised last year. That is a 126% increase from 2017.
What’s ironic is the total number of data breaches in 2018 fell by 23%.
Paul Robinson of GreyCastle Security said, “It’s very difficult now to avoid these attacks, even if you're taking the precautionary measures, such as managing your bank account and things of that nature. Now please do that, don't neglect watching your accounts and keeping an eye on your medical records, but the horse has left the barn per se.”
Assurant’s new study, The Connected Now says the connected lifestyle isn’t connecting with everybody. This is where insurance might be helpful. More on that in a bit.
The risk management firm said like it or not, nearly 40% of consumers identify themselves as technophobes. They own an average of 1.3 connected products. These range from smartphones and computers to equipment to manage things in the home.
Those same people — or 78% of them — worry about ID theft and the compromising of their personal information. They point that worried finger at interconnectivity — connectivity they are not that happy with.
Yet, 69% do admit this technology makes their lives easier.
This is where insurance has an opportunity to shine. Parks Associates — an Internet of Things marketing and consulting company — said its research finds that 40% to 50% of households with access to broadband Internet want additional insurance services.
Parks Associates said this applies to those who own their homes and those renting.
Of those interested, 35% want insurance services that are proactive and that communicate the potential risk of the smart devices in their homes. They want to be updated and warned ahead of time.
Parks Associates spokesman Brad Russell said the insurance they want will take care of the restoration of those services and repair their home after the damage occurs.
“A restoration service that repairs damage is the most appealing service among insured households, but there is strong interest in proactive services, which would be enabled by smart home devices and AI capabilities to detect and prevent risk situations,” he said.
And he noted that advances in technology now let the insured and the insurer connect and interact more easily than ever. “Connected devices are reshaping the way consumers think about many traditional services and how they interact with their service providers,” he added. “These trends in consumer expectations, combined with the wealth of data derived from IoT solutions, are opening significant market opportunities for the insurance industry.”
Source links: PropertyCasualty360.com, USA Today, WHEC-TV, Insurance Business America