IoT better known as “the Internet of Things” is the network of physical devices embedded with electronics (like software and sensors and even network connectivity) which enable these objects to connect and exchange data. Consumers look to IoT to enable access, capture and store data, increase productivity, manage mobility, and more all while protecting their privacy.
Insurers were initially sceptical, viewing IoT as more of a consumer novelty than a potentially transformational agent of change and opportunity. However, the benefit of such systems is now starting to be realised, as the list of practical applications for IoT grows. It now impacts every line of insurance class from life, annuities, health to workers’ compensation, specialty lines and all types of commercial insurance as well.
This new wave of connectivity not only includes laptops and smart phones, it has now grown to include cars, smart homes, connected wearables (think Apple Watch and Fitbit devices), and connected healthcare.
So much more of a person’s activities, actions and habits are now collected in data feeds from IoT. According to a Gartner report, by 2020 connected devices across all technologies will reach 20.6 billion.
Now think of how insurance companies can use that data to tailor policies…
Stay tuned.
