In recent years, the life insurance industry has greatly enhanced the speed and efficiency of its underwriting decisions. This change in the underwriting process is due in large part to the use of new technology in data collection and risk assessment. As the utilization of such technology expands, the changes within the industry will accelerate at an even faster rate—potentially before the industry is able to determine whether these changes are ultimately beneficial. Accordingly, the insurance industry should analyze the potential benefits and drawbacks of new technology used to increase underwriting efficiency while adaptive measures are still possible. This analysis should consider both the immediate practical concerns of implementing this technology and the larger effect such technology will have on the industry at large.
This article addresses the general concepts involved with the utilization of new technology within the insurance industry. As this new technology is highly technical and evolving quickly, this article is not intended to be an exhaustive discussion of the legal issues implicated by the use of such technology. Practitioners should therefore consult the insurance regulations and litigation procedures followed in the locations where they practice in conjunction with litigating any of the issues addressed in this article.