Historically, insurance providers have sought to offer services to keep families safe in the event of a disaster, offering protection for peoples’ cars, homes, and health. The landscape of this industry is undergoing a rapid change, however, as the dangers of cyber terrorism are being brought to light faster than anyone could expect. The recent WannaCry attack highlighted how unprepared the world is for large-scale, malicious cyber-attacks, a weakness that if left unchecked could lead to horrendous loss of life and property.
The unfortunate reality is that hacking cannot be stopped. The nature of cyber-attacks allows hackers to remain anonymous, making it exceedingly difficult to prevent attacks from occurring. As a result, defense is the only strategy that can be feasibly taken, and insurance companies have no small part in the execution of that tactic.
In addition, the automotive insurance industry is facing a steep dilemma, namely the advent of autonomous vehicles. As automotive insurance rates are often defined by the risk factor of the customer, self-driving cars throw this business strategy for a loop. With one of the most widely advertised advantages of autonomous cars being their safety and ability to minimize accidents, the automotive insurance industry will find it harder to keep demand for their services high. Insurance firms must take step towards the future, entering the market of defending those new attack surfaces brought about through the emergence of connected cars – car hacking.
By integrating themselves into the connected nature of new cars, insurance companies will also be able to offer a plethora of services never before possible. These include innovative new products like UBI (User-based Insurance), tailor made, user behavior based insurance plans allowing customers to benefit from truly accurate insurance plans. We are already seeing the application of PAYD (Pay as you Drive) plans that offer better plans based on mileage. True IoT development will further refine these strategies, and may make them a possible de facto standard.
Other uses include FAAS (Forensics as a service), which will give insurers access to the data collected by a vehicle as it drives. This ability to investigate crashes using the on-board computers’ data can significantly reduce the time and effort needed to find the facts in the event of an accident.
Ed Leefeldt of CBS alludes that presently, companies pay at least $3.25 billion each year for cyber insurance. More shocking though, is that the number is anticipated to rise to $20 billion by 2025. This huge increase in necessity for cyber insurance is one of the key targets for cyber security firms like Trillium. With even corporate giants such as Disney not being safe from the dangers of hacks, small businesses and even individuals need to consider the value of investing in cyber insurance. As a lead innovator in the field of IoT security, Trillium is dedicated to securing the lives and livelihoods of the people and companies of tomorrow.