Top 3 insurance risks of wearable technology
11th August 2015
These potential risks are amplified when it comes to the latest gadget trend – wearable technology. The market for wearable technology has exploded in recent years, with research firm Gartner estimating that more than 68 million products will ship this year alone.
Risk 1. Underinsurance
Research from market intelligence agency Kantar Media estimates that 13.1 million people will be using fitness trackers by the end of the year, doubling the 10% figure that currently use them. Additionally, Mintel has revealed that 31% of UK adults are interested in using a smartwatch with fitness functionality, as an efficient way to monitor their health and lifestyle.
Although they may have health benefits, these devices also have associated insurance risks, and it is important you consider these items when totalling home and business contents sums insured.
With the cost of wearable technology reaching up to £100,000 for luxurious smart bracelets, customers who do not account for this in their insurance arrangements risk finding themselves underinsured – or even uninsured – should the worst happen.
Additional protection should be considered for wearable technology where values are higher than the standard limits.
Risk 2. Data Security
According to a 2014 report from Samsung, corporate mobile security is not as secure as it should be, raising concerns about the number of companies that may be ignoring the risks of wearable technology.
Around 75% of businesses use mobile devices that are connected to their corporate network, yet poor security protocols make breaches commonplace, with more than 10% of businesses incurring costs of more than £25,000 due to security incidents in the last year. If wearable technologies are connected to business devices, the number of incidents could increase dramatically.
Risk 3. Loss of personal information
Many experts believe that 2015 will mark the next big shift in personal technology, with the launch of the Apple Watch hailed as a tipping point. Wearable technology is fast becoming a must-have household item, able to monitor fitness, sync with apps on other devices and provide many other functions.
But where items of wearable technology, such as smartwatches or smart-headphones, are connected to our mobile devices, their loss could have devastating repercussions.
Add to this the loss of fitness trackers or other wearable pieces of technology, which are now recording a whole new world of personal data, and personal privacy, could become a thing of the past.
Personal information could be unsecure, and manufacturers, third party partners and competitors potentially have access to sensitive data. Customers need to have an understanding of the repercussions of unwanted access to this data and the impact from both a commercial and personal perspective.
Wearable technology has the potential to change the way we live, and it is important to ensure you have insurance that covers the new risks that come with it.
For a no obligation insurance review and to find out more about how we may be able to help you please call Horner Blakey Insurance Brokers on 020 7929 0108