While the insurance industry has a reputation for being static and slow to change, it has experienced significant disruption and innovation over the past five years. For example, insurers have made major investments in digital initiatives as they seek to innovate customer and distribution relationships. At the same time, a pioneering “InsurTech” sector has emerged, exploiting digital opportunities to sometimes complement − and sometimes compete with − the traditional insurance sector.
But the most dramatic changes to the insurance industry have resulted from the internet of things (IoT). IoT refers to connected devices that can transmit data using technologies such as Wi-Fi and Bluetooth. These devices includes “things” like wearable devices, sensors in household appliances and connected vehicles. Analysts predict there will be 21 billion IoT sensors installed by 2020 – and we’re already seeing how this technology is dramatically changing our world today.
This whitepaper explores how the IoT has the potential to radically disrupt the traditional insurance business model and modernise traditional processes, especially in how the sector assesses risks.
Topics covered:
• Turning the internet of things into a sustainable business model for insurance.
• IoT opportunities for insurers.
• Technical challenges.
• Business challenges.
• Exploiting IoT.