A really interesting read examining the challenges underwriters face when considering the risk of a connected home.
The (abridged) list that I've quoted are the parties that could be responsible, and the covers that would likely be in place for a loss arising as the result of someone hacking in to a home's wireless sensor network, specifically a sensor embedded in the walls to monitor for potential fire risk.
I find the whole connected world issue to be an exciting topic, and certainly the role of the underwriter in this new world will be ever more demanding. What then are the skills that need to be fostered and developed for underwriters to provide accurate and effective pricing??
here’s a list of potential responsible parties and the insurance policies designed to absorb their loss costs: The drywall manufacturer, which is covered by product liability, general liability (GL), and errors and omissions (E&O). The drywall installation contractor, (GL and E&O). The manufacturer of the sensor, (product liability, GL and E&O , and possibly cyber). The programmer that created the code for the sensor, (E&O). Third-party manufacturers that contributed components to the original equipment manufacturer, (product liability, GL and E&O). The company that embedded the sensor in the drywall, (GL, E&O and possibly cyber). The providers of Internet and wireless services, (GL, E&O and cyber). The maker of the data analytics system interpreting the signals coming from the sensor, (GL, E&O and cyber). The house or building owner’s traditional package of first-party and third-party property and bodily injury insurance policies.