The Hartford and QBE Advance Telematics and Cyber Coverage for Evolving Risk Landscapes

Telematics programs in the insurance industry require a comprehensive, people-focused approach to yield significant safety and operational benefits. Experts from The Hartford emphasize that successful telematics implementation depends on clearly defined objectives such as improving driver safety and reducing costs, combined with compliance with state privacy laws and robust fleet management fundamentals.

Driver engagement is critical, particularly addressing concerns about data privacy through transparent communication about technology use and data handling. Beyond enhancing safety and reducing accidents, telematics technology offers additional advantages, including fuel economy, maintenance savings, brand protection, and improved driver retention through reward systems. Video telematics can also exonerate drivers in incidents, enhancing trust and employee engagement. For insurers, telematics fosters stronger client relationships and facilitates broader risk management collaboration. The Hartford has developed partnerships with telematics providers to guide clients in selecting tailored solutions, which vary from simple device-based models to integrated camera systems. Their risk engineering support helps maximize telematics investments to transform these technologies into core operational assets rather than just expenses. Concurrently, regulatory scrutiny on cyber risk disclosures is intensifying, particularly with the SEC's introduction of a specialized Cyber and Emerging Technologies Unit. Companies face increased enforcement related to cyber incident disclosures that extend beyond traditional privacy breaches, creating potential coverage gaps in cyber insurance policies. QBE North America highlights that typical cyber policies focus on privacy violations but may miss SEC regulatory actions, which can overlap with Directors & Officers (D&O) liability issues.

To address this, QBE has introduced two coverage enhancements: SEC Disclosure Costs Coverage, providing legal counsel expenses for SEC compliance post-cyberattack, and Enhanced SEC Regulatory Coverage that includes violations of SEC regulations beyond privacy statutes. These innovations target emerging risks tied to evolving SEC rules on cybersecurity and technologies such as Artificial Intelligence, helping public companies manage compliance and reduce regulatory exposure. Brokers have responded positively to these tailored cyber coverage options, reflecting growing market demand for solutions that align with current regulatory landscapes. Enhancing incident response frameworks with specialized legal support and monitoring emerging technology risks are advised best practices. Both The Hartford and QBE underscore the strategic integration of technology-driven solutions and adaptive insurance coverage as essential for risk mitigation and operational resilience in today’s complex environment.