Insure smarter on wearable technology

Kantas Media estimates that by the end of 2015, 13.1million of us will be using a fitness tracker to aid us in our journey towards a healthier, more active lifestyle. Not all of us will be opting to the highest range, which can be up to £100,000 for a luxury smart bracelet, but even fit bands such as FitBit and Nike Fuel Band are closer to £100, and Apple’s Smart Watch can range from £299-£13,500.

What are the risks?

This is quite an expensive item to be wearing on your wrist day in day out, where an expensive watch may otherwise be taken off for certain activities including running. Aside from the obvious risks around frequently taking an expensive item out of your home, there is potential for a host of security issues, not just with your own personal data, but the data of your company.

Wearing your company’s data

Many of us already use a smart phone for work purposes, whether this is our own, or a company mobile. This in itself already presents a cyber security risk, as your company could be vulnerable outside its own secure networks if you’re linking back to its shared information via a portable device. This potential problem is only exacerbated by a smart watch if used for work purposes.

Graham Long is the Vice President of the Enterprise Business Team at Samsung UK, and he himself recognises that there are risks in these technologies that need to be accounted for:

“There is a clear challenge for businesses to keep pace with evolving technology,” he says. “The challenge for businesses and IT decision makers is to embrace new ways of working, but ensure all devices are highly secure and efficient.”

Wearing your own data
There is a threat to your personal data too. For wearable technology to monitor your lifestyle and habits, it needs to know a substantial amount about you, information that could be precarious in the wrong hands.

What to consider with your smart watch

 As with anything else in your home which may be particularly valuable, you may want to note your wearable technology as a specified item on your policy, so it’s better protected both in and outside your home. This is especially a good idea when you consider that, like your phone, you’ll often be taking this valuable item out the house with you.

When inputting your personal data, remember to read all terms and conditions and accept that if your passing your data onto the manufacturing company, they themselves may fall victim to a cyber breach which leaks their customer data, yours included.

If your employees are using smart watches for work purposes, make sure you have clear policies in place on what you can access outside the business network and what should not be to limit the chances of a cyber breach via a member of staff, even if it’s unintentional.
In their article “Top 3 insurance risks of wearable technology” Zurich Insider notes how wearable technology is expanding with the following items coming soon to the market:

  • Smart gloves – able to aid in the manufacturing process by giving production advice
  • Smart jewellery – provides wearers with messages, reminders and alerts
  • Smart headphones – plays music, monitors heart rate, removes noise caused by your body’s motion