The Outlook for Wearable Technology
Wearable technology has captured the public imagination, from smartwatches and smartglasses to sensors that can be woven into fabrics and can detect movement, pressure and can help to regulate body temperature. As the new technology develops, sales are expected to skyrocket. Global wearable device wholesale revenues will grow an estimated 3,200% from 2013 to 2020, according to a new report by research and consulting firm Strategy Analytics. The smartwatch and smartglasses categories will dominate total wearable device revenues for the next decade, according to the report.

FoxBusiness recently reported that wearable technology may provide meaningful workplace benefits in fields where people do not typically have easy access to computers and do not have their hands free. For example, emergency room doctors have already begun to use Google Glass to access patient electronic healthcare records. Similarly, in the energy business, field service workers have been using Google Glass to assemble complex tools.

In addition to making the workplace more efficient, wearable technology also may be able to make it safer. In fields such as construction and distribution, workers eventually may be able to use wearable technology that can alert them if they are leaning over too far, if they have reached their lifting threshold or if they are at risk of a slip and fall. Wearable technology may soon be able to warn workers about hazardous chemical leaks in a lab or provide data about air quality, according to the University of Michigan.

Next page: How agents and brokers can get ready for the wearable technology wave

Getting Ready for the Wearable Technology Wave
As this technology becomes more widespread, brokers and agents have an important role to play as a resource for corporate clients. Insurance professionals should learn more about this new technology and understand the potential benefits as well as the risks. Brokers and agents should work with their clients to conduct due diligence about the various emerging technologies and applications as the risks may vary greatly from one industry to the next and from one application to the next.

Many businesses already have policies and protocols in place to address the risks from mobile technology, such as smartphones, laptops and tablets. Businesses should consider expanding their existing policies to include wearable technology.

A thorough review of existing insurance policies is also recommended to identify potential gaps in the existing insurance portfolio and help provide guidance in connection with risk mitigation. For the insurance industry, this new field presents potential risks but also offers exciting possibilities for risk reduction when applied to detecting unsafe or unhealthy exposures.

By learning about this new field, brokers and agents can provide a valuable service to their clients as they begin to consider the use of wearable technology in the workplace.