Hackers have managed to take remote control of a vehicle
Hackers may be presenting the auto industry with a serious new challenge. Recently, hackers were able to take control of a Jeep Cherokee through the vehicle’s entertainment system. The hackers in question are Charlie Miller and Chris Valasek, two security specialists that have begun to focus on the hackability of vehicles. The Jeep was hacked in order to showcase the risks that the auto industry, and by extent insurers, now face as digital threats become more prevalent.
Hack allows Miller and Valasek to control the various functions of a vehicle
Through the hack, Miller and Valasek were able to take control of the vehicle’s climate control system, the volume on the radio system, and they could even spray the windshield with wiper fluid, effectively blinding the driver operating the vehicle at the time. Miller and Valasek suggest that they, and potentially other hackers, can take control of thousands of vehicles through the Internet, and this may become a nightmare for the auto insurance sector.
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Insurance industry is becoming more concerned about digital risks
The insurance industry is no stranger to digital risks. Many insurers have been working to address these risks more aggressively in recent years, but few have managed to be successful in doing so. Fears of vehicle hacking have been present for some time, but this has primarily been an issue that automakers have had to take care of. Insurers may have to step in with new insurance products that account for the threat of digital attacks of cars.
Fiat Chrysler launches recall of 1.4 million vehicles after the hack
The hack has led Fiat Chrysler to issue a voluntary recall of 1.4 million vehicles following details of the hack released at a security conference hosted by the University of California-San Diego. How the hack could affect the auto insurance industry is not yet certain, but some insurers have expressed concern for new digital risks that have begun to emerge. Handling digital risks may be a costly and difficult problem, especially as cyber attacks become more sophisticated.