Skip to main content

How Will IoT Impact the Insurance Industry?

The Internet of Things will disrupt and impact many industries, from automotive to healthcare to energy and beyond. One industry that is already being redefined by IoT, but we don’t usually think of as such, is the insurance industry.



How will insurance providers change their offerings when we all own self-driving cars? How will the massive amounts of data from a manufacturing floor influence workers comp and industrial risk? If everyone one day uses wearable, health monitoring devices, how will insurers determine rates and provide health insurance to their customers? What about home insurance for a connected home?

At the Insurance IoT USA Summit event in Chicago, panelists and keynotes set out to answer these questions and more. Read on for the main takeaways and insights from the event.

Opportunity & Challenges with Connected Insurance

The three main business challenges for companies working to build Insurance IoT products will be:
  • Business Model Design–Delivering a valuable product to customers in a profitable way
  • Demonstrating ROI
  • Consumer Adoption and Trust of IoT
The 3 main technology challenges providers will face are:
  • Security and privacy
  • Interoperability and compatibility
  • Analytics
Another challenge mentioned at the event was that IoT may make it difficult for insurers to stay relevant. For example, how much insurance will one pay for when their house is already monitored 24/7 for break-ins, and the chance of a fire or flood decreases incrementally because they are constantly monitoring their appliances, water and heat systems, and more?

There are a number of companies who are already tackling these issues, many of which shared their experiences in building products that combine insurance with IoT technology and data.

Creative Solutions for Autonomous Driving, Smart Homes, and More

Combining Insurance and IoT is all about connecting the insurance sector with clients and their risks. Right now, there are about 1,300 InsureTech startups innovating in the insurance space, and nearly all of them are connected to the Internet.

IoT provides the insurance industry with more data than ever before, enabling companies to more effectively determine rates and provide services that keep people and their assets safe.

Smart Home Insurance 🏡

Marcus Shiver of ROC Connect provided insights into creative home insurance solutions built for the connected home. The ROC Connect platform helps clients and partners easily deploy new products and services for the smart home. Interestingly, they work with many insurance providers.

He noted that smart home systems and devices offer insurance companies the opportunity to reinvent their business models and to move from simply insuring against risk to helping customers protect the properties. The Internet of Things provides opportunities for insurance companies to offer product-service bundles. These bundles (i.e. home insurance + home monitoring technology) would reduce the probability of damage and lower the overall risk for homeowners and their insurers.

IoT Increases Health and Prevention 💊

It is predicted that the connected health market will be worth $61 billion by 2020. A panel on healthcare featuring Dave Wang (Striiv), Rahim Rajpar (John Hancock), and moderated by Shefi Ben Hutta (Coverager), spoke about healthcare tech and the role of IoT in providing health insurance.

Connected wearable devices are being utilized in some really interesting ways. The John Hancock Vitality Program is a great example. Someone with diabetes may pay more for life insurance. But as part of the Vitality Program, they can use an Apple Watch to track activity and if they meet certain goals, they will get a discount on the following year’s premium.

Wearables and other health technologies are giving insurance providers vast amounts of data that can be used to price rates more fairly and profitably, and help customers prevent injury and disease.

To wrap up, the event was a deep and insightful dive into the evolving relationship between the insurance industry and the Internet of Things. We learned about the immense opportunity that exists in combining the two, and some challenges that providers need to think about when developing products and services.

Most interestingly, we got to hear first-hand from the companies that are already building products and coming up with innovative solutions to utilize IoT in insuring people and their homes, cars, and belongings.

Comments

  1. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It's always nice when you can not only be informed, but also entertained!friv jogos online
    jogos online 2019
    friv jogos 4 school online

    ReplyDelete
  2. Today I trained Back which was a great session. Fine tuning food intake as I go now just to allow a little variety so I'll try and post a little more, there won't be great changes to start with, I'll be keeping supplements similar also.
    Jogo live
    jogo 360
    games io

    ReplyDelete
  3. Given that Ben was only 39 when he wrote this letter, he seems to have already amassed considerable mistress experience, getting an early start by fathering a son out of wedlock when he was 24. His presumably-long-suffering wife raised the child in her own home.
    kizi games
    games free for kids
    friv Games 2019

    ReplyDelete

Post a Comment

Popular posts from this blog

Narrowband – IOT

Narrowband-IoT (NB-IoT) is a new technology standard, designed to broaden the future of IoT connectivity. Ratified by the 3GPP, a telecoms standards body which works to develop future generation wireless technologies, NB-IoT will soon be deployed by operators across the globe.The technology was developed to enable efficient communication and long battery life for mass distributed devices across wide geographical footprints and deep within the urban infrastructure. In other words, (NB‑IoT) is a new way of communicating with “things” that require small amounts of data, over long periods, in hard to reach places. Narrowband IoT (NB‑IoT), also known as LTE Cat NB1, is a Low Power Wide Area (LPWA) technology that works virtually anywhere. It connects devices more simply and efficiently on already established mobile networks and handles small amounts of fairly infrequent 2‑way data, securely and reliably. And the best is, it provides: very low power consumption excellent ext

IoT Applications in Agriculture

The Internet of Things (IoT) has the capability to transform the world we live in; more-efficient industries, connected cars, and smarter cities are all components of the IoT equation. However, the application of technology like IoT in agriculture could have the greatest impact. The global population is set to touch 9.6 billion by 2050. So, to feed this much population, the farming industry must embrace IoT. Against the challenges such as extreme weather conditions and rising climate change, and environmental impact resulting from intensive farming practices, the demand for more food has to be met. Smart farming based on IoT technologies will enable growers and farmers to reduce waste and enhance productivity ranging from the quantity of fertilizer utilized to the number of journeys the farm vehicles have made. So, what is smart farming? Smart farming is a capital-intensive and hi-tech system of growing food cleanly and sustainable for the masses. It is the application of moder

Top programming languages used in IoT

In recent times, the Internet of Things is now a popular domain in the developer community. According to research by Statista, there are 6.21 million developers working in IoT. Today, the Internet of Things (IoT) is very much a reality with smart thermostats, connected cars, and smart home hubs like Amazon Echo (that uses multiple languages like Node.js, Java, and Python). If you bring it down to the basics, “smart things” are using a lot of the same languages that are used by applications on your personal computers and mobile devices. According to the survey of developers conducted by the  Eclipse Foundation , the top four languages for building IoT solutions are as follows: Java   C JavaScript Python Go These languages are more or less the same when it comes to desktop apps, mobile apps, and servers. So it might seem like there’s no difference other than smart objects are like little computers. Although this is sort of true, there are some significant differences whe