Here are a few areas where advancements in technology could mean increased risk for insurance carriers:
Today’s smart homes include features such as thermostats that can be adjusted remotely, electronic locks that can be managed from a smartphone, and voice assistant technology that stores passwords, calendars, bank account information, and other valuable data. While this technology all helps to make the homeowner’s life easier, it also creates increased risk for both the insured and insurer.
The Internet of Things
These days the internet is the backbone of most properties, both residential and commercial. The internet supports smart home technology and has a hand in running a number of key systems in the home that would create a number of vulnerabilities if the internet was to become compromised by a malicious character. From a business perspective, a cyber attack could mean a disruption in operations, reputation damage, loss of customers, and loss of the business itself.
The Value of an In-Person Property Inspection
Some insurance carriers are choosing to skip the in-person property inspection because data reveals that the property is low-risk. While this saves money on the front end, eliminating this crucial aspect of underwriting creates more exposure for insurance carriers.
An in-person property inspection is an invaluable step in the underwriting process as it gives insurance carriers the opportunity to ask the property owner questions that could reveal additional risk. Our team at Insurance Risk Services asks the off-the-grid questions during our residential and commercial property inspections to further assess additional risks and identify opportunities where specialty coverage may be needed. Asking out-of-the-box questions like if the insured’s wireless network is password protected, if their alarm systems are hardwired or remote, or if they take advantage of voice technology such as the Amazon Echo can reveal some additional vulnerabilities that insurers need to take into account when underwriting.
Contact us at Insurance Risk Services to learn more about how our thorough underwriting support can help you to best determine which risks are worth taking.