Imagine a world where algorithms calculate risks and act accordingly. Predictive models will know the exact outcomes and suggest optimal actions to take, and all is shared with insurance companies. As the digitization of insurance continues, some crucial security and privacy questions are also raised. Ethics or innovative technology, which comes first?
Interactive, self-optimizing insurance policies that are connected with wearables and smart surroundings, continuously analyzing us and calculating risks; digital-driven insurance in an interconnected smart world will raise questions about surveillance. What does the future of insurance really mean for basic human aspects like privacy, security and solidarity?
One thing is for sure: From social data to location data to purchase data, we’re handing over ever more rich data to our insurance companies. But many of us are mostly unaware of what this data is used for. In addition to privacy concerns, other issues loom: What about insurance companies steering our decision-making process? What about real-time risk scores? Is technology reducing the autonomy of customers all for minimizing risk and damage?
New Challenges and Questions
Technology leads us toward a world of opportunity, but there is a dark side of it. This side is also on the rise because many of the promises of the technology world have developed counter-wise. Several questions are raised:
We’re moving further into a world where technology controls technology. With this approach, it’s vital for humans to understand the autonomous processes and steps taken by technology. The biggest ethical dilemma of the near insurance future is who will be in control: technology or humans.
The future of technology in insurance will be about answering ethical questions, enabling transparency and explainability, reducing complexity and adding humanity. Decisions made by technology must be unbiased and the supporting algorithms transparent. The goal should be to create customer experiences facilitated by machines – and intensified by humans.