https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ATechnology_riskDefinition:Technology risk - Revision history2026-06-13T23:13:21ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Technology_risk&diff=11990&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-12T01:03:05Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>⚠️ '''Technology risk''' in the insurance industry refers to the potential for financial loss, operational disruption, or strategic setback arising from failures, vulnerabilities, or rapid changes in information technology systems and digital infrastructure. For [[Definition:Insurance carrier | carriers]], [[Definition:Insurance broker | brokers]], and [[Definition:Managing general agent (MGA) | MGAs]] alike, technology risk is both an internal operational concern — tied to the systems that run [[Definition:Underwriting | underwriting]], [[Definition:Claims management | claims]], and [[Definition:Policy administration system | policy administration]] — and an external underwriting exposure that must be assessed when insuring technology-dependent clients.<br />
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🔄 On the operational side, an insurer faces technology risk when legacy systems fail, software deployments go wrong, [[Definition:Cloud computing | cloud]] outages disrupt customer-facing services, or [[Definition:Cybersecurity | cybersecurity]] breaches compromise [[Definition:Policyholder | policyholder]] data. Regulatory expectations around [[Definition:Operational resilience | operational resilience]] — including guidelines from bodies like the NAIC, the PRA, and EIOPA — increasingly require carriers to identify, assess, and mitigate technology risks through formal risk management frameworks, [[Definition:Business continuity plan | business continuity planning]], and third-party vendor oversight. From an underwriting perspective, technology risk manifests in lines such as [[Definition:Cyber insurance | cyber insurance]], [[Definition:Technology errors and omissions insurance (tech E&O) | tech E&O]], and [[Definition:Directors and officers insurance (D&O) | D&O]] coverage, where the insured's technology posture directly influences [[Definition:Loss | loss]] potential.<br />
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🔮 The velocity of technological change amplifies this risk category in ways that distinguish it from more static perils. Emerging technologies like [[Definition:Artificial intelligence (AI) | artificial intelligence]], [[Definition:Blockchain | blockchain]], and [[Definition:Internet of Things (IoT) | IoT]] introduce novel failure modes and liability questions that lack deep [[Definition:Historical loss data | historical loss data]], challenging traditional [[Definition:Actuarial analysis | actuarial]] approaches. [[Definition:Insurtech | Insurtech]] innovation, while creating efficiencies, also increases the insurance value chain's dependence on interconnected digital systems — meaning a single technology failure can cascade across carriers, intermediaries, and policyholders simultaneously. Managing technology risk effectively has therefore become a board-level priority for insurers seeking to protect both their own operations and the portfolios they underwrite.<br />
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'''Related concepts:'''<br />
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* [[Definition:Cyber insurance]]<br />
* [[Definition:Operational risk]]<br />
* [[Definition:Technology errors and omissions insurance (tech E&O)]]<br />
* [[Definition:Operational resilience]]<br />
* [[Definition:Cybersecurity]]<br />
* [[Definition:Insurtech]]<br />
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