Consumers look to the Internet of Things (IoT) for the ability to store data, to enable access, increase productivity, and manage mobility, all while protecting their privacy. Rob Schimek, CEO of AIG states that with IoT, “we have the ability today to know more, about more things, with greater certainty than we ever have before”.
Data is the consistent by-product that underpins IoT and according to Drew Doleski, “A gap has been created, because data by itself isn’t valuable, a transformation needs to occur to turn the data into business valuable and business relevant.” Building consumer engagement is another boom area for IoT. Alex Schwarzkopf recommends starting small in building up the database, in a way that makes sense to consumers. This database needs to be financially feasible, creating value for the firm. The product being built needs to seamlessly integrate into the current business process.
The list of practical applications for IoT is growing every day, and some examples of these applications are listed below:
Adam Gabrault states that the raise in Artificial Intelligence (AI) technology when coupled with IoT will provide actionable insights for consumers and businesses by getting information from censors and gathering data in real time. An example of a successful implementation of IoT is the smart belt technology used by companies such as Delta, where their employees are data producers. The belt records how they work, such as whether they are standing or sitting, bending and how high they are within the factory. The belt also has an SOS button incorporated in case of an accident, and all this is aimed at gathering greater data and improving employee safety.
This example shows how the intersection between device manufacturers and insurance carriers is resulting in new ways IoT can be used. IoT is still following an infancy curve, however the future is nearly upon us.
Gabrault sees IoT evolving to the point where insurance policies will need to change to be a lot more usage based, because of new technologies such as autonomous cars. This will create new possibilities for third party vehicles. For example, Uber cars may become driverless, and this will have a profound impact on insurance policies where the car will no longer be an individual asset.
An interesting evolution will be the issue of how to price these services, because it will depend on who has access to data and how quickly that data can be accessed according to Schwarzkopf. As a result, the stores of data will become even more valuable for insurers.
