IoT data has the potential to reshape insurance business models as it provides all the data necessary to prevent risks more quickly, more effectively and with greater precision. Offering major benefits to both insurers and insureds, harnessing IoT data can also help encourage less risky behaviour.
This is according to a report published today by the Geneva Association, which highlights early success stories in insurance that demonstrate IoT’s huge potential to promote safer and healthier workplaces and lifestyles.
Jad Ariss, The Geneva Association’s nanaging director, said: “Our report showcases the tangible impact IoT risk prevention has in improving – and even saving – lives. Although commercial lines are more advanced in rolling out these technologies, there is convincing potential in personal lines as well, with outcomes like fewer auto accidents and damage to people’s homes. The case studies in our report, of insurers who have implemented successful IoT initiatives, should inspire the whole industry. It is customers who will benefit most from this evolution.”
The association’s report is based on interviews with over 60 insurers, technology companies, start-ups, global organisations and academics across all insurance business lines and geographies.
Isabelle Flückiger, The Geneva Association’s director of new technologies and data, and lead author of the report, said: “Data provide a critical path to more affordable insurance coverage and to ‘insuring’ previously uninsurable risks through prevention. IoT is a fundamental enabler of this and cannot be ignored by the insurance industry. Insurers should also focus on how to translate the use of IoT-based risk prevention into sustainable business models.”
Matteo Carbone, co-author, added: “The world is now hyperconnected. Insurance of the future will use data to enhance customer experiences, impact core insurance processes, create new knowledge and improve sustainability. There are already pioneers in this space, and their stories demonstrate the powerful and increasing role of IoT data in better risk prevention.”
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