Insurers must be ready to adapt coverages and services accordingly.
Two key issues, GDPR and California Privacy Act Regulations, coupled with the fallout from the highly visible Facebook/Cambridge Analytica controversy, will result in more risk for smaller companies that are collecting customer information and sharing with advertisers. Insurers will likely see more claims related to these issues in 2019, and must prepare accordingly.
The challenges surrounding the collection and manipulation of data will be increasingly scrutinized in the aftermath of the Facebook/Cambridge Analytica scandal. At the same time, the impact of GDPR and the California Privacy Act will begin to be felt on a much broader level than federal or state boundaries. Any consumer-facing platform where people voluntarily share information, from shopping apps to interactive video game communities to fantasy football apps, will need to be proactive to remain compliant.
We can anticipate a shift in revenue streams and a change in both how companies are perceived and what types of information they are able to share with advertisers. Insurers must be ready with coverages and services that reflects this shift.
You can read the rest of our insurance predictions here.