How the rise of the Internet of Things is changing insurance

December 14, 2022 12:03 PM

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Collecting and sharing data via the Internet of Things has become so common that some aspects, such as GPS navigation, are taken completely for granted. With a wealth of data at their disposal, insurers are exploring the multiple ways they can take advantage of IoT to advance their business.

Read our roundup to find out more about the impact of IoT on the insurance industry.

The Hartford's IoT executive talks tech use for prediction, prevention

The Hartford's IoT Innovation Lab has a clear objective: to use connected devices and the data collected from them to mitigate insurance claims.

Dan Campany, vice president of innovation and head of IoT, puts it simply: "Things that are preventable and predictable, let's try to address them, and prevent and predict them, so that they don't happen in the first place."

In an interview with Digital Insurance, Campany discussed the mission of the lab, the types of IoT devices that are most effective, the potential impact of the lab's work on policies and more.

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The Hartford's IoT executive talks tech use for prediction, prevention

How insurers can harness the power of data

The emergence of vast networks of connected devices collecting and sharing data via the Internet of Things has transformed information into the preeminent currency in a digital world that has given new meaning to the phrase "a wealth of data".

Insurers are inundated with data, but therein lies the challenge: how do you harness the power of so much data without drowning in it?

Karen Clarke, Managing Director, Americas of Anaplan, has a clear strategy. "Getting the most out of the data available today requires true digital transformation – a mix of digital tools, systems, and processes, combined with the right resources to manage all three."

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How insurers can harness the power of data

Smart home tech: Greater potential than just policy discounts?

The combination of the latest smart home technology and the rapidly expanding IoT is transforming the insurance industry, as insurers join forces with home security tech monitoring firms to offer discounts to policyholders for losses sustained due to theft, burglary, floods and even hurricanes.

But the possibilities go beyond mere policy discounts for installing home security tech. Insurers and smart home tech firms are now looking into the potential for loss mitigation, for example with new technology that can identify flooding and turn off water valves as a result.

Several partnerships are already exploring the opportunities, including State Farm with Ting, Nationwide with Notion and Deep Sentinel, and Hippo with SimpliSafe, Ring, Notion and Lennar

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Smart home tech: Greater potential than just policy discounts?

Nationwide expands smart home, commercial fleet IoT

Two disparate sets of Nationwide customers — commercial fleet businesses and homeowners — are the beneficiaries of the insurer's continuing development of its IoT technology prowess.

Nationwide's new partnership with NoCell Technologies aims to eliminate distracted driving among commercial fleet truck drivers by disabling apps and cell phone capabilities when an app on the driver's device detects the vehicle is in motion.

The insurer has also expanded its partnership with smart home tech firm Notion. Customers who join the insurer's smart home program can get a discount on a monitoring system that uses sensors to alert them about water leaks, doors and windows opening, temperature changes and more.

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Nationwide expands smart home, commercial fleet IoT

What emerging technologies are shaping the future of personal lines?

Digital technology has made daily life more streamlined for millions of people, with the Internet of Things connecting devices and providing data that can help you find the quickest route home as well as adjust your house's temperature before you get there.

These new technologies are not without risks for smart-car drivers and smart-home owners, such as hacking and ransomware, which are raising concerns for personal lines insurers.

However, the same IoT and digital technology are behind the ready availability of new data sources, which has the potential to enable carriers to offer new risk mitigation options and products to their customers.

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What emerging technologies are shaping the future of personal lines?