We look at how 3 insurers are aiming to use the internet of things (IoT) to build better insurance products, avoid losses, and offer new risk management services.
The internet of things (IoT) — a term used to describe a broad system of data-gathering, internet-connected devices — is changing the way many industries operate.
For insurers, the value of IoT lies in the constant stream of real-time data it provides. IoT devices such as machine sensors, environmental monitors, and wearables can provide insurers greater visibility into the risks customers face.
Commercial insurance — which includes products like workers’ compensation, commercial property and liability, and equipment coverage — makes up over $700B in annual insurance premiums globally. However, only 24% of insurers are currently using IoT for commercial policies, in comparison to 56% for auto, according to a recent survey by Connected Insurance USA.