Data has become big business over the past decade. Companies collect and store masses of data to aid in daily operations. The trouble is, while this data can be useful, it can also be stolen.
Hackers are continually looking for opportunities to access and steal big data. This can be a huge challenge for businesses, particularly those in the technology industry. It has also led to some significant changes in insurance.
Here, we’ll look at how big data is changing the insurance products available in the technology sector.
New insurance products offered
Big data has also changed the actual insurance products offered. New products and services have been released to both protect against the threat of technology and keep up with the changing times.
For example, did you know there is a new type of insurance you can invest in with technology in mind? Those in the tech sector can take advantage of technology insurance. This is designed to help protect businesses against the specific risk’s technology presents.
Impacting the cost of insurance
In some cases, big data has led to a rise in the cost of insurance policies. In the technological sector, premiums are being applied in accordance to the threat of cyber attacks for example. Companies who naturally hold a lot of data, are at an increased risk of being targeted by hackers. This is starting to be reflected in the cost of insurance.
It isn’t just the technology sector that is experiencing a rise in costs. Drivers are also finding their policies are becoming more expensive. This is because insurers are using devices which monitor driving behaviour. Helping to provide a more accurate account of the level of risk a driver poses, the data collected can cause the cost of insurance to soar.
Working alongside technology
An interesting change in the insurance products offered is that they can now work alongside technology. The devices used by car insurers are a great example.
The health sector is also taking advantage of a technology connected policy. Insurers are using digital products such as the Fitbit, to monitor customer health. They can then tweak the policy if required. According to research, a third of insurers are using the data received by devices to offer their services.
These are just some of the ways big data is changing insurance products. As we continue to rely more and more on data to operate businesses, it is going to lead to further changes being made. The risks of technology can’t be ignored by businesses. It is crucial to protect your company with the latest cyber-security techniques, as well as to ensure you have adequate insurance.