Were exposed to risk every day.
From crossing the road to using our phones on the toilet.
The insurance industry is built on this principle.
Policies offer protection in the event the odds arent in your favor.
The field of actuarial science is devoted to this cause.
Actuaries use mathematical formulas based on historical trends to model events of uncertainty.
This gives insurers an idea of the likelihood of a certain event taking place.
But what about when theres no historical data to base these assumptions on?
How about a robot designed to put out fires in an Amazon warehouse?
Understanding emerging risks
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From asking Siri to turn on your Philips Hue, to ordering an Uber or Deliveroo.
10 years ago, that last sentence would have made no sense at all.
All of this new technology is introducing new risks into the world we live in.
In the insurance industry, theyre known as emerging risks.
Cyber
Our increasingly connected world is creating new opportunities for criminals to exploit technology around us.
And its only going to get worse.
As every case is different and nuanced, issuing a single cyber protection policy is almost asking for trouble.
Instead, risks must be constantly monitored and any intrusion nipped in the bud before it becomes an issue.
Its likely this has invalidated many of the static cyber policies companies had in place previously.
Drones
This one is close to my heart as its an area weve pioneered atFlock.
What about one of the incredible autonomous warehouse robots produced byGideon Brothers?
Ground robots are coming and hopefully with the right insurance for when things go wrong.
Who do you save?
This same thought experiment is often posed when we talk about a future where autonomous cars rule our roads.
Or to be more specific, a future where humans and autonomous vehicles share the road.
It is this meeting of man and machine where the real risks lie.
Our stupid, unpredictable, emotional humanity is very hard to preprogram against.
The sharing economy
This isnt one piece of technology but a concept insurers never imagined.
In the sharing economy, our insurance requirements are directly linked to thestateof an asset.
The changing states of our assets pose a whole new challenge for insurers of the past.
This is part of a bigger trend in the insurance industry, and one Im really excited about.
Imagine if your insurance company could prevent you from having any accidents in the first place?
A risk partner that understands how we operate and helps us make better decisions to minimize risk.
Theres so much data and computing power out there that its entirely possible.
Responsible data usage is the way of the future.
