Insurance reduces financial uncertainty and makes accidental loss manageable. But as Covid-19, climate change, and economic, political, and social upheaval create market volatility and turbulence, every type of insurer – health, life, property, casualty, environmental, reinsurers, and others – is facing significant new challenges.
Insurers are responding with innovations in all areas. In property and casualty insurance, typically a low-tech area of the industry, insurers are offering high-tech apps and online claims management in response to consumer demand. Health care insurers are dealing with ever-rising costs and inconsistent patient outcomes by diversifying their patient pools and waiving cost-sharing by members to encourage early medical intervention. And in all areas of insurance, automation, digital applications, artificial intelligence, and advanced analytics engines are further transforming the practice by streamlining the intake of client information and, in some cases, enabling the clients to manage their own underwriting and claims processes.
Unsurprisingly, these innovations are leading to new liabilities and new requirements for expertise. As insurers move quickly toward digital technology, insurance expert witnesses must opine on whether companies have complied with the increasing requirements imposed on them by state privacy, data, and security laws. For example, recent class action lawsuits have alleged that an automobile insurance provider allowed bots to scrape drivers’ license information from the internet; and that a property and casualty insurer unlawfully collected and stored clients’ retina scans, voiceprints, and face scans without their knowledge or consent. And, insurance expert witnesses with digital forensics expertise are increasingly needed to uncover evidence from electronic devices and verify the validity or falsity of insurance claims.