Technology’s influence on the insurance industry continues to grow in the age of digitalization. As the industry continues to infuse technology into its practice, it is increasingly susceptible to technological liabilities, such as increasing cyber and product liabilities and recall risks.
Business models in the digital economy are more complex and without clear borders, making liability harder to apportion and claims more complex to settle — despite the frequency of claims expected to decline. The growing “sharing economy” raises new questions about liability. In the future, a road traffic accident could involve the vehicle manufacturer, software provider, and the fleet operator, as well as third parties involved in the accident.