Novarica’s team comments on recent insurance and technology news
Novarica comment by Mitch Wein, VP of Research and Consulting: “Uniformity is the key to the new Data Security Model draft law. Once the draft is accepted by NAIC (target end of 2016), each one of the states will start looking at passing a law based on the draft law provided. What this highlights to carriers is compliance to the NIST framework, no matter what form the final draft law takes, will be key to avoiding fines, penalties, and reputational damage in the future. Within 2-3 years all states will have a version of the final NAIC draft law on the books. If you are not evaluating your security practices today through a NIST assessment, you should start right away. Novarica has a security workshop to highlight key areas of concern that can help.” More from Novarica on IT security frameworks.
Novarica comment by Steve Kaye, Associate VP of Research: “Uber announced it was purchasing Otto, a company founded by ex-Google employees that seeks to retrofit long-haul trucks for autonomous driving. The long-haul trucking industry is currently faced with a driver shortage, and sleep-deprived drivers are also a problem, one that may grow with recent regulations. The near-term impact may be reduced accidents (as highways are an easier problem to solve than city streets), with drivers on-board to help load and unload, for unanticipated issues, and to prevent hijackings.
From Uber’s perspective, this further expands their presence in logistics. Uber has already been able to evade regulations in some locations by operating as a delivery service rather than a ridesharing firm. Combine this with Uber’s plans to invest in mapping roads worldwide and Uber may wind up making more money from commercial logistics services. After investing in self-driving cars and trucks, perhaps equipment at ports and remote piloted or semi-autonomous ships?” More from Novarica on autonomous vehicles and commercial lines
Novarica comment by Rob McIsaac, Senior VP of Research and Consulting: “One of the things which frequently follows introduction of expanded compliance rules is a natural period of grieving for an earlier status quo, as well as some notable scrambling to identify options to deal with a revised operational landscape. However, implementation of the rule changes can actually create a form of competitive advantage. Better customer insight can, for example, create new or improved marketing and sales opportunities. From the news reports, this is exactly the approach being taken by LPL. While this undoubtedly carries some near-term pain, the strategic intent focuses on using compliance with the DOL mandate to improve their use of information and their competitive position concurrently.
Potentially lost in some of the other news is the idea that LPL also plans to make use of “robo-advisor” capabilities. In addition to addressing short-term practical needs in the market, this may have the longer-term benefit of “encouraging” a form of future state omni-channel capabilities that would have otherwise faced a more difficult “row to hoe” for implementation. It will be very interesting to watch this develop for LPL, and to see the responses that come from other BDs and IMOs.” More from Novarica on the DOL ruling.