It is generally accepted that IoT devices are inherently insecure and that manufacturers have a long way to go to reassure security practitioners that the benefits outweigh the risks. Amongst the known cyber risks, denial of service (DDOS) could become a major risk, and security researchers have already shown how this could occur. If an insurance company is now offering a financial incentive to install an IoT alarm, are they also implicitly underwriting the potential cyber risks of using the device?
Insurance firm Zurich is offering a discount on monthly insurance fees should a customer use the IoT alarm offered by Cocoon, despite security concerns over IoT devices. Are we ready for an IoT alarm? Zurich is offering a discount on IoT alarms, further pushing the idea of a ‘smart home', but security experts have concerns over the network security of these types of devices.