Thoughts about insurance usually come at the end of an endeavor, following equipment installation, when a system is already built and ready to run. Thus, the insurers traditional and current function has been to get involved once at the beginning, to sell a policy, then later, but only when things go wrong. The Internet of Things (IoT) might change that. At the very least, IoT data will make it easier to evaluate claims and give quotes, and according to this special report from the Boston Consulting Group, IoT technologies may make the difference between profitability for early adopters, and loss for those who can’t keep up.
Insurers already have a convenient position that could put them at the center of Internet of Things (IoT) ecosystems, applying IoT data to ease almost every part of the insuring process.
The number of connected devices in the IoT (Internet of Things) is growing every day, having produced 14 zettabytes of data already. That unthinkable number will only grow as time goes on. As with most technology that has staying power, early adopters will reap the benefits. Insurers will already have a natural place that could put them in the middle of IoT ecosystems. If insurance agents become capable of having IoT “ecosystem conversations,” they might take on more of a consultative role in IoT implementation.
In the insurance industry, the IoT has applications in traditional insurance obligations, like underwriting (insurers will be able to use real-time data rather than just historical...
Giambattista (“GB”) Taglioni, Christian Reber, Nathalia Bellizia and Wallrick Williams are professionals with the Boston Consulting Group.