Ovum: Using the Internet of Things does not come risk-free: insurance liability hides in plain sight

InsightaaS: Ovum’s StraightTalk blogsite provides a central portal for opinions from across Europe’s best-recognized IT analyst firm. In this post, principal analyst for financial services technology Barry Rabkin looks at how an increasingly-interconnected world delivers entirely new types of threats – and why these will impact not just IT, but the governance and insurance approaches of IT users and suppliers.

We are living in an era of interconnectedness. The Web and concomitant advances in telecommunications are enabling increasing numbers of people to connect to each other. This has many positive aspects for society, but it also has negative consequences. Distracted driving and distracted walking, for example, are very real negative consequences of people interacting with their mobile devices in inappropriate places and at inappropriate times. Society is now moving toward another type of interconnectedness, the Internet of Things (IoT): tangible assets with embedded sensors transmitting data to and receiving data from other tangible assets. Like the Web, the IoT will have positive and negative impacts on society as an increasing number of tangible assets “talk” to each other. Ovum believes that enterprises using the IoT and vendors offering IoT capabilities need to understand the risks involved and ensure their companies have a requisite level of liability insurance to cover these risks.

Read the entire post: http://ovum.com/2013/09/04/using-the-internet-of-things-does-not-come-risk-free-insurance-liability-hides-in-plain-sight/