Survey shows which digital risk motor insurers find the most challenging
by Terry Gangcuangco 25 Jul 2017
It looks like providers of motor insurance in the UK are doomed, at least when it comes to digital risks – a new study found only 18% of surveyed insurers believe the industry is fully prepared.
According to LexisNexis Risk Solutions’ report “Facing up to the challenges of digital risk,” UK motor insurers find the following as the most challenging digital risks:
• Email Security and Data Protection – 35%
• Identify Theft – 35%
• Cyber Crime – 27%
• Connected Technology and Social Networks – 26%
• Malware Spread – 16%
“This response reflects the huge volume of online transactions in this sector of the market and the constant threat of fraud, highlighting the importance of data used for accurate verification at point of quote as well as industry concerns over the protection of personal and behavioural data through connected technology,” explained LexisNexis Risk Solutions.
When asked which difficulties they’ve encountered, 42% of insurers said they had already faced operational challenges as a result of digitisation; 40% had faced price competition; and 40% had faced data protection challenges.
Selim Cavanagh, insurance UK and Ireland vice president at LexisNexis Risk Solutions, said robust strategies to deal with emerging digital risks should be set in place.
“Advances in data analytics are enabling insurers to understand and segment customers more effectively and make more informed risk decisions,” he said.
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