Sur­vey in­di­cates wear­able tech adop­tion by in­sur­ers

RISKSA Magazine - - News -

A 2014 sur­vey by re­search ad­vi­sory, Strat­egy Meets Ac­tion (SMA), re­ported that 3 per cent of in­sur­ers have al­ready be­gun to use wear­able tech – which refers to any minia­ture tech­no­log­i­cal de­vices worn at­tached to the body. The sur­vey also re­vealed an­other 3 per cent are ex­per­i­ment­ing with the de­vices and 22 per cent are de­vel­op­ing strate­gies for util­is­ing the new tech­nol­ogy. Ac­cen­ture con­ducted an­other re­cent sur­vey which looked at in­surer ex­ec­u­tives in nine coun­tries which found that 63 per cent of th­ese Unit trust com­pa­nies and life as­sur­ers have been align­ing their ef­forts in reach­ing a com­mon mea­sure of in­vest­ment costs they may now be re­quired to dis­close as new dis­clo­sure re­quire­ments that will en­hance trans­parency in the unit trust in­dus­try be­came legally ef­fec­tive last month. The As­so­ci­a­tion for Sav­ings & In­vest­ment SA (Asisa) is over­see­ing the align­ment of the two in­dus­tries in reach­ing the ef­fec­tive an­nual cost (EAC) which is a stan­dard­ised mea­sure of in­vest­ment costs. If the EAC be­comes a manda­tory dis­clo­sure, it will al­low for a cost com­par­i­son across the board of col­lec­tive in­vest­ments and life as­sur­ance port­fo­lios. The EAC will likely be en­forced at the in­tro­duc­tion of the new leg­is­la­tion that will reg­u­late the con­duct of fi­nan­cial ser­vices providers un­der the new mar­ket con­duct author­ity which will be cre­ated af­ter the Fi­nan­cial Sec­tor Reg­u­la­tion Bill is en­acted. Col­lec­tive in­vest­ment scheme com­pa­nies will now also have to pub­lish min­i­mum dis­clo­sure doc­u­ments and up­date their fund fact sheets to meet the new re­quire­ments as per the board no­tice is­sued by the Fi­nan­cial Ser­vices Board (FSB) last Au­gust which be­came ef­fec­tive this month. The board no­tice was is­sued with re­gard to the Col­lec­tive In­vest­ment Schemes Con­trol Act (Cisca) Unit trust com­pa­nies within Asisa have pre­vi­ously fol­lowed a vol­un­tary code for ad­ver­tis­ing col­lec­tive in­vest­ment schemes with­out legal re­quire­ments for in­for­ma­tion pro­vided on their fund fact sheets. The FSB, who reg­u­lates the sec­tor, has un­der­taken to fur­nish new ad­ver­tis­ing and dis­clo­sure re­quire­ments for col­lec­tive schemes af­ter the In­ter­na­tional Mon­e­tary Fund and World Bank’s Fi­nan­cial Sec­tor As­sess­ment Pro­gramme found the vol­un­tary code prob­lem­atic due to Asisa not be­ing a proper self-reg­u­la­tory in­dus­try body. Schemes are now obliged un­der the new Cisca board no­tice to sub­mit all mar­ket­ing and ad­ver­tis­ing ma­te­rial to the FSB for ap­proval. ex­ec­u­tives be­lieve the in­sur­ance in­dus­try will broadly adopt wear­able tech­nolo­gies within the next two years. Al­most one-third of the re­spon­dents in­di­cated they are al­ready us­ing the de­vices to en­gage em­ploy­ees, clients, and part­ners. Tony Ben­ton, vice pres­i­dent of re­search and con­sult­ing in in­sur­ance at No­var­ica, out­lined key po­ten­tial uses for wear­able tech­nol­ogy in in­sur­ance in a 2014 brief: Wear­able Tech­nolo­gies and In­sur­ance, which fo­cused on the data- cap­tur­ing ad­van­tage for claims pro­ce­dures. Other ar­eas where wear­ables could prove use­ful in­cluded mar­ket­ing, un­der­writ­ing, risk man­age­ment, per­sonal in­jury claims man­age­ment, as well as new prod­uct devel­op­ment. Ben­ton men­tioned Google Glass which can cap­ture video footage, pic­tures, and au­dio to take state­ments from wit­nesses and doc­u­ment dam­ages. A hot topic in in­sur­ance is the feed­back ac­cu­mu­lated by the wearer about the wearer which has al­ready proved use­ful in doc­u­ment­ing a users ac­tiv­ity af­ter a per­sonal in­jury claim in a Canadian court. As it stands, there is a faster adop­tion rate of wear­ables out­side of the in­sur­ance in­dus­try and that is where the op­por­tu­ni­ties lie for in­sur­ers and un­der­writ­ers.

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