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“The pace of technology advancement can leave entire industries playing catch-up, which is why it’s so important for the insurance market to understand the impact these will have and adapt accordingly.”
BLM partner Tim Smith – who co-led the writing and insights within a newly released paper examining technology risks as they relate to product liability, motor, employers’ liability, and technology-specific claims – has warned of significant knock-on effects on traditional markets amid what he described as a thriving technology sector in the UK.
The research paper is the second in a series created by the insurance law firm in collaboration with Institute of Directors (IoD) economists, with the initiative aimed at delving into macroeconomic forces and how they are shaping the insurance claims landscape in the London Market. Part of volume two’s message is pretty straightforward, and that is to be quick when reacting to technology as developments are bound to disrupt.
“From our work across the London Market with insurers, brokers, and managing general agents, we know the importance of understanding how emerging risks will impact the volume and nature of claims,” said paper co-leader and BLM partner Jim Sherwood. “We hope this paper will provide the market with a better understanding of what’s on the horizon and how technology will continue to affect all aspects of insurance.”
Employers’ liability insurers, for instance, are being urged to take action in the face of increased self-employment and the growing use of automation. BLM associate Malcolm Keen said changes in the nature of employment are affecting the pool of those who can potentially be compensated for an injury or illness.
