Pricing is at the heart of insurance operations as, in the past, it was hard to refine pricing models. Internet of Things (IoT) has lowered the barriers to innovative pricing; not only is it now possible to monitor a vehicle's location or the temperature of a building or cargo, sensors can also provide rich real-time data that gives instant and granular insight into the presented risk. As a result, new business models can be derived (e.g. behavioral-driven models).
Using algorithms and AI, all this information can be aggregated, crunched, measured, and modeled, and risk can be priced accordingly. However, IoT-enabled data, news feeds, and other external data will not simply innovate pricing models. Insurers have to decouple their pricing models from the IT department and bring them closer to the line underwriting department. The role of insurance here is, ultimately, to prevent loss or damage
At present, insurers continue to grapple with reducing associated administrative costs and accelerating claims settlement. Hence loss mitigation is the first step on the ladder of prevention. IoT sensors can communicate at the onset of damage before it can escalate.IoT technologies will enable insurers to get closer than ever to their customers. Through constant engagement, insurers can act as a business partner, spreading the risk with their customer. Additionally, insurers can use the data gathered directly from customers to build a single and comprehensive customer view of the insured risk, thereby enhancing the transparency and credibility of the premium being charged. Providing clients with a view of the risk and charges will help increase customer satisfaction and loyalty.
The report "Internet of Things in Insurance - Thematic Research", offers a framework in which to look at IoT, summarizes the important trends, and identifies the key players.
- This report analyses the impact of the internet of things (IoT) on the insurance industry.
- It discusses how IoT is among the most disruptive technologies in the insurance sector.
- It identifies prominent areas in which IoT will impact insurance and the big tech players within this technology theme.
Reasons to buy
- The report highlights some of the big technology players within the IoT theme, classified by value chain segment.
- It identifies the technology trends within the IoT value chain, as well as trends showing how IoT is being implemented across the global insurance sector.
- The report analyses the IoT value chain across four layers - devices, connectivity, data, and control.
- It provides an industry analysis, explaining IoT, its stages of development, its broad market segments, and a competitive analysis.
- The report discusses the impact of IoT on insurance through key recommendations for insurers.
- The report offers a technology briefing, to explain the six big IoT market segments and the IoT value chain as four distinct layers.
Table of Contents
- Technology trends in IoT 4
- IoT trends in Insurance 8
VALUE CHAIN 12
- Device layer 13
- Connectivity layer 14
- Data layer 16
- App layer 17
INDUSTRY ANALYSIS 18
- The standards battle 18
- Market size and growth forecasts 22
- The four stages of IoT development 25
- Competitive analysis 25
- Mergers and acquisitions 26
- Timeline 28
IMPACT OF IOT ON INSURANCE 30
- Key recommendations for insurers 31
COMPANIES SECTION 33
- Public tech companies 33
- Private tech companies 38
- Insurance companies 40
TECHNOLOGY BRIEFING 42
- The six big IoT market segments 42
- Navigating the IoT value chain 44
APPENDIX: OUR "THEMATIC" RESEARCH METHODOLOGY 46