Could the rise of smart lock technology be unlocking a new set of cyber risks that insurance brokers should be discussing with their clients? If findings of a new study by specialist insurer Ecclesiastical are anything to go by, it looks like it… or at least there’s apprehension surrounding the technology.
Conducted by Censuswide on behalf of Ecclesiastical, the survey of over 2,000 respondents found that 63% are concerned about the security risks involved in the use of smart locks. This trumps the 34% who believe the technology provides convenience and is a time-saver.
Smart locks, for instance, can enable the likes of couriers to enter properties and finalise deliveries even without a customer having to receive the packages.
Ecclesiastical’s commissioned research showed that 62% of those polled think smart locks are ‘hackable’ while 56% are worried that the technology could increase the risk of burglary for their homes.
According to Blackstone Consultancy operations manager Tom Tahany, the development of smart lock technology is still in its early phases and the already available devices vary quality-wise.
“While the concept of smart lock technology services can be safe and secure if they are bespoke and specified correctly, budget smart lock devices available online or from your local hardware store may be vulnerable,” noted Tahany, whose camp has partnered with Ecclesiastical for a cyber guide for brokers.
“We recommend that brokers encourage their clients to consider all the security risks before installing ‘off the shelf’ smart lock technology services in their homes.”
Meanwhile Ecclesiastical’s art and private client development director Sarah Willoughby had this to say: “As the adoption of smart lock technologies becomes more mainstream, it’s important that brokers encourage their clients to consider the risks associated with smart lock technology systems.
“Cyber insurance can offer a safety net should the worst happen and brokers play an important role in helping clients understand the risks they are facing and in ensuring they have the right cover in place.”
