Changing Nature of Risk and Insurance due to Connected Technologies
Insurers Maturity for Offerings Linked to New Technologies
Connected technologies are altering risk fundamentals such as risk transparency, and thereby changing the nature of risk as well as the insurance business as a whole. While traditional insurance models involved statistical risk assessment based on proxy variables for the customer as a category, connected technologies are poised to bring in more real-time and individualized insurance models.
Three key connected technologies for insurance are smart ecosystems (such as smart homes and smart buildings), wearable devices, and driverless cars. It was observed that insurers are most interested in exploring smart ecosystems, followed by wearables and driverless cars.