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Technological Innovations Are Transforming Almost All Industry

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Technological innovations are transforming almost all industry sectors today including insurance. The primary aim of insurance sector is profitable growth and the use of innovative technologies is one of the most effective ways to enable then achieve this goal. However, many insurance organizations are challenged to keep up with the rapid evolution of technology. Although new technologies are critical for businesses in insurance industry, implementing them require huge capital and resources. According to Green (2016), technological advancements are driving the demand for insurance companies to acquire new skills and capabilities. The insurance industry is facing increased demand from both established and emerging markets but tapping the…show more content…
According to Tuttle (2017), some unethical insurance organizations are hiring hackers to obtain specific information from their competitors to fill their need for technological innovation. Moreover, hackers are increasingly discovering ways of exploiting modern vehicles software. O’Rourke (n.d) posits that cases of hackers taking control of a car remotely and locking the driver until a ransom is paid have been reported. This threat has created a new level of risk for the auto insurers which may not be addressed by the current insurance policies. Therefore, resolving these cyber issues may require the insurers to reconsider their business strategies to stay relevant.
According to Green (2016), information obtained from insurance companies through cyber-crime may be misused for financial gain through criminal activities such as identity theft, and extortion. Cyber security threats in insurance companies can harm their ability to conduct business, compromise the protection of private information and undermine confidence. The access to confidential data through cyber-crime can severely harm the affected policyholder and damage the reputation of the sector.
In light of cyber risks, insurance industry must implement strategies to protect consumers’ information from cyber criminals and safeguard the insurance organization. Tuttle (2017) asserts that companies must start to budget money to avoid disruption of their business and damage to their reputation with the
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