Does new technology put an end to policyholder risk declaration? The impact of digitalisation on insurance relationships

Marta Ostrowska ()
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Marta Ostrowska: Universität Zürich

The Geneva Papers on Risk and Insurance - Issues and Practice, 2021, vol. 46, issue 4, No 4, 573-592

Abstract: Abstract The availability of data from telematics and wearables enables insurers to design and price products based on more information about the consumer. As new technologies develop rapidly, it is worth looking more closely at the way digitalisation changes the nature of insurance relationships. The purpose of this paper is to analyse how technology influences risk assessment and the insurance contract. Particular interest will be given to the role of traditional risk declaration. The author claims it is possible to obtain a full risk profile based merely on the information provided by ‘smart’ devices. This raises the specific question of whether the traditional policyholder’s risk declaration is still needed. The paper also discusses whether the use of telematics will alter the nature of insurance relationships in such a way that the doctrine of utmost good faith will no longer apply, or will apply only to a limited extent.

Keywords: Risk declaration; Doctrine of utmost good faith; Telematics; Internet of things; Big data; Insurance; New technology; Trust (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41288-020-00191-6

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