IoT-Powered Transformation in the Insurance Industry

Being one of the most exciting areas of innovation, the insurance industry by-product, InsurTech, attracted more than $1.2 billion in investments in 2015 – six times the amount invested in 2010. According to a 2015 report from WEF, The most imminent effects of disruption will be felt in the banking sector; however, the greatest impact of disruption is likely to be felt in the insurance sector.

One of the reasons InsurTech took off rapidly is the application of advanced technologies enriching non-conventional solutions. AI, big data, IoT, blockchain technology and new business models applied in the insurance industry in recent years have proven the importance of tech-led transformation in traditional spheres, insurance being one of them.

IoT is a particularly interesting enabler of advanced InsurTech solutions. Given that out of 28 billion connected devices forecasted by 2021, 16 billion will be related to IoT, the importance of leveraging the connectivity is hard to overestimate. Moreover, out of the total number of IoT devices, 1.5 billion will have a cellular subscription by 2021.

With the explosive growth rate of IoT devices enabled with advanced sensory technology, the network of connected devices will be able to accumulate a tremendous amount of meaningful data about one’s activities and the environment. Over time, sensory technology will gain even greater importance as it will accumulate a significant amount of data. Underwriting will get to another level with the opportunity to put together historical data and detailed streams of current data from a variety of connected devices. It will allow the viewing of more accurate patter ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 30 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.