The Internet of Things (IoT) might sound like some fun reference but in fact, it encompasses everything that is connected to the internet. Any device or object that can “talk” to each other can be classified under this umbrella term, which means more and more devices as technology grows. And with the growth of devices, from sensors to smartphones and wearable devices, that store and transmit data, insurers have found ways to use the technology.
IoT plays a number of roles, from data collection and monitoring to security and optimisation. With sensors tracking the movement of goods, devices assess the condition of products and people interacting with services, the landscape for insurance has changed.
As our devices get more intelligent, so has our technology around insurance. This is where “insuretechs” have stepped in. Insuretechs can use information gathered through the IoT to learn behaviours and adapt to be more precise.
From business models that used to offer sweeping claims, to where consumers can now find ones that are personalised to them, their lifestyle and the business. Or improving fraud protection my using security systems that sense every network connection and potential connection. By converging real-time data that IoT can provide with the potential for insurers to alter the claim process, it can benefit the insurance buyer and make the process more positive.
IoT and insuretechs will continue to grow together as the ecosystem comes out with new technology and new ways to compile and read data.