Cyberspace isn't an ethereal digital world. It's a matter that's very present in the insurance industry. From online insurance queries to social media marketing, you're already living in the digital realm every day. How are cyber opportunities changing the insurance industry, and how can you hop on board?
Augmented and Virtual Reality Pose New Risks to Consumers
You're wearing a virtual reality headset playing a game with friends when you walk into a wall. Who's to blame for your broken nose? Quoted in Insurance Business Magazine, Matthew Smith of KPMG states that "Augmented reality (AR) and virtual reality (VR) are set to become key emerging risks in the industry."
New technologies come with new risks for consumers. There's a risk of data loss due to security breaches. There are also very real physical risks when virtual and actual reality collide – from chronic health risks due to employees who use VR or AR in their jobs to cyber bullying and stalking. These are issues that the insurance industry must address as an interesting and emerging market. Even if you're not offering insurance that's specific to AR and VR, you'll need to consider how they'll play into other products, such as auto and health insurance.
Machines Are Becoming Smarter
With phones that can look up information from encyclopedic knowledge online and with devices that can communicate with clients around the world, today's cyber technologies have already fundamentally changed the ways that we live and do business. However, online programs are becoming better able to analyze data for your business as well. New technologies allow machines to learn about your clients in more depth, and they have better predictive capabilities.
The catch? There's still a need for sensible humans at the wheel to build these analytics and make sure that they're using the right information to make the right kinds of decisions. Be excited about new analysis tools, but know that you still need to be the manager of these analysis processes.
Data Security Is a Serious Issue for All Businesses
According to TechCrunch,
"Back in 2011, Sony’s PlayStation network was breached; attackers compromised more than 77 million personal accounts, costing Sony an estimated $170 million."
Today, data security is not just a serious concern for businesses that work online or businesses that work in the computer industry. All businesses need to consider how they manage client data and how well-prepared they are for hacking or an accidental data breach. Even something as simple as sending the wrong file to a client could have insurance implications. This is especially important at a time when much of the data about a business' clients could be stored online in the cloud. As you talk with your business clients, ask them how they're protecting their clients' digital security.
How are insurance jobs changing? What opportunities will your insurance agency have in the future? At American Agents Alliance, we're here to help you make sense of the changing insurance industry. Get to know the industry at our Alliance Convention and learn more about our many membership benefits.