Risk & Analytics

The Risks of Digital Interconnectedness

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I hope all readers had a quiet Xmas, Hanukkah, Saturnalia, Presentmas or whatever else you happened to be celebrating. This year, I started out wanting to write the usual overview post, but quickly discovered that the Random Thoughts posts I had been putting out over the course of the year covered pretty much all of it already. So instead of rehashing the factoids in those posts, I tell you about something else: the new study I am working on for 2016.

We have been stressing how increasing interconnectedness – mobile, social, telematics, IoT, the Cloud etc etc – has been changing our life as consumers and the way organizations in all industries are doing business. But what about the risks of digital interconnectedness? We are not only talking about the loss of data or privacy; the risks of interconnectedness include real physical damage up to potential loss of life – see the (pretty scary) Jeep Hack. Damage can be intentionally done by criminals, activists or government agencies [1], or be unintentional through technical failures or human errors. The risks affect organizations and individuals – and with growing interconnectedness, they will grow.

How will this change the world medium to long term, and the world of insurance? That is what the upcoming study “Insurance 2025 – The Risks of Digital Interconnectedness” [2] is exploring, through the use of several global surveys and interviews. I won’t go into too much detail so as not to ruin the surprise when we show the results next June, but I’d like to show two questions we are asking that I’d like all readers to think about for a bit (and post your take on an answer, if you like) going into 2016:

  • What new risk or type of risk (that is not relevant today) do you envision as relevant in 10 years?
  • What currently relevant risk (of any kind) do you see disappearing?

I wish you all a good transition to 2016 and a great start to the new year.



[1] It might be worth discussing over a beer or two what the difference between the first two is, if there is any… Winking smile

[2] Working title, of course, but we might just be keeping it.

Insurance Leader, IBM Institute for Business Value

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