Computers, mobile devices, smart TVs and other connected technology are essential to ourpersonal lives. They can entertain, delight, and connect people andthings in new and different ways. We use technology to make ourlives easier, safer and more secure.

At the same time, computers, smart phones and otherinternet-connected home devices create new risks: a reliance ondigital information that can be damaged or stolen by a virus orhacker, and computer systems that can be exploited or corrupted bya cyber attack.

Insurance must evolve

As the demand for new personal technology grows, it will createchallenges and opportunities for the insurance industry. In adigital world, where we live and work online, insurance must evolveto cover cyber exposures for people and their homes.

With the proliferation of personal smart phones, high-speedinternet and Wi-Fi, homeowners already have the technology tocontrol, with a few clicks, all major appliances, electronicdevices, heat, lights, door locks and alarms. In the future, almostevery home device will have a "smart" option with remote monitoringthat learns about family lifestyles and takes actions to anticipatetheir needs. Billions of equipment sensors will generate thousandsof exabytes of personal data.

Computers and connected home devices network through a homerouter for internet access, so they can be controlled with mobileapps and websites. They also can be hacked from anywhere in theworld, exposing our information and home systems.

Increased risk of theft, fraud

Technology is changing the way we access financial services —and increasing the risks of theft and fraud. At least 61% of U.S.internet users bank online, according to the Pew Research Center,and that number is growing. In a 2015 report, the Federal Reservefound 52% of smart phone owners with a bank account had used mobilebanking.

Personal technology makes our lives easier in so many ways. Yet,consumers are increasingly concerned about cyber risks.

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About 30% of the personal computers in the United Stateswere infected with some type of malware, according to securityvendor Panda Labs. (Photo: iStock)

Increase in malware infections

The top two fears of consumers in a 2016 survey for HSB by ZogbyAnalytics were a virus; a hacking incident or other computer attackon data or systems; and the theft of money or other propertythrough fraudulent wire or bank account transfer or otherdeception.

They have a reason to worry.

About 30% of the personal computers in the United States wereinfected with some type of malware, according to security vendorPanda Labs, and 16 million people had serious problems with acomputer virus within the previous two years.

The number of connected devices, meanwhile, is exploding withthe Organization for Economic Cooperation and Developmentpredicting a typical family of four will own 24 connected devicesby 2017 and 50 devices by 2022. In addition to phones, laptops andtablets, that will include appliances, TVs, connected cars, smartlight bulbs and eHealth medical equipment. This Internet of Things creates multiple points ofentry for hackers and cyber thieves into homes and phones.

Personal lines must begin to address cyber risks

Although Identity Theft insurance is widely available forindividuals and families, other Cyber coverages such as homesystems attack, data breach, ransomware cyber extortion, online fraud andcyber computer attack for individuals have lagged behind commercialproducts. Personal lines policies must begin to address cyberrisks.

Consumers are looking for ways to protect their information withmeaningful, reliable insurance protection. It's an adjustment forunderwriters accustomed to traditional perils such as wind andfire, but Homeowners and Renters insurance should include Cyber asa basic coverage.

In today's connected world, our personal devices are vulnerableto attack. Our private data is always at risk. With the Internet ofThings, smart phones and connected homes, who knows what newthreats to individuals will appear as technology evolves?

The insurance industry is positioned to help consumers protecttheir privacy with products and services that make a realdifference, from a source that your customers trust.

Related: Smartest house on the block: Home telematics andtheir window for insurers

Timothy Zeilman is vice president and counsel for strategicproducts with Hartford, Connecticut-based The Hartford SteamBoiler Inspection and Insurance Company (HSB).