The explosive growth of IOT is here and now, it’s considered the new Digital revolution. As per Gartner IOT forecast, it is estimated that by 2020 and more than 35 billion things will be connected to the Internet. Also Gartner predicts global spending on IOT — including all hardware, software and services — has exceeded $1.3 trillion in 2015 and is forecast to reach $3.5 trillion by 2020.

1. IoT – Platform As A Service
Website: - www.paasmer.co Blogs:- blogs.paasmer.co
Internet of Things is Poised to Transform
the Insurance Sector

2. I have 14+ years of IT industry experience in
hardware design, debug and verification domain.
For the last 10+ years I was working in Intel in the
roles of Senior Application Engineer on Intel X64
server and client platforms and as a Program
manager for the Intel reference platform design,
manufacturing and roll out function by working with
ODMs in China and USA.Kavitha Gopalan
Managing Director | CMO
MOBODEXTER Inc

3. Introduction
The explosive growth of IOT is here and now, it’s considered the new Digital
revolution. As per Gartner IOT forecast, it is estimated that by 2020 and more
than 35 billion things will be connected to the Internet.
Also Gartner predicts global spending on IOT — including all hardware,
software and services — has exceeded $1.3 trillion in 2015 and is forecast to
reach $3.5 trillion by 2020.
IOT is the network of things that generate data and communicate with other
devices. This data stored in cloud and processed through Analytics and
Machine learning are opening new growth avenues for each business.
IOT is the network of things that generate data and communicate with other
devices. This data stored in cloud and processed through Analytics and
Machine learning are opening new growth avenues for each business.

4. Can Insurance industry leverage the vast amount data from
IOT to disrupt the traditional operating models and establish
new frontiers for growth?
IOT with its ability to get data from billions of connected devices can
revolutionize and reshape the Insurance Industry and create new business
models.
Data from sensors embedded in cars, homes, buildings wearable can be used
by insurance company to understand the correct picture of exposure and risk of
what is being insured at the same time helps them to make holistic offering to
meet their customer’s needs.
IOT also makes it possible for insurers to move to a more engaged model with
their customers.

5. There are several value propositions in leveraging IOT in
Insurance Industry.
Product Customization: Offering Customized Insurance based on historical
data, like reduced premium for good driving history.
Risk Mitigation: Early detection to reduce exposure risk and reduce claims.
Smoke detection, early weather detection and warning.
Improved CRM: Increased interactions with customers; providing regular
feedback to customers on their activity.

6. There are three verticals in IOT that will be adopted by
Insurance companies.
Vehicles: Telematics is already a success story. The data from connected car
provides data on the driving pattern, driving history, speed etc which help the
insurance company to create a personalized Usage Based Insurance (UBI)
premium for the policy owner based on the usage, lower value for responsible
driving.
Home: Another example is how effectively the data from connected home can
be used by insurers, sensors in commercial building can provide data on safety,
energy, security and help to decide on the value of property, similarly the real
time data transmitted from the sensors (smoke alarm) installed in home can
also help reduce the risk level and losses.

7. Individual: Data from wearable collected on the health, fitness
level determines or personalizes the personal insurance. Adopting healthy life
style helps policy holders to lower premium. Similarly, data on compliance for
medical issues like how the patient is following medication can help the
insurance company to take decision.

8. Lot of insurance companies have already started leveraging IOT to improve
their business and revenue models and to create customer value.
They are encouraging their customers to go for smart devices by providing
discounts and loyalty points, Pruhealth, Aetna allow their members to share
their fitness wearable data to gain credits, like loyalty points when members
demonstrate healthier lifestyles such as walking more.
Home Insurance companies are giving discounts for customers implementing
thermostat for smoke detection.

9. No doubt IOT will provide enhanced insights for better decisions by the
consumer and Insurance organization thus providing new opportunities and
better consumer experience.
The biggest risk in adoption would remain the question of data privacy and data
security.