Insurers Should Approach IoT With an Innovation Mindset

An effective IoT program can create a feedback loop that benefits both the insurer and the insured

Boston, MA (Mar. 7, 2018) – While deployment of IoT initiatives by insurers is low, insurers are highly interested in operationalizing IoT products. Despite the inherent challenges experimenting with IoT poses – in particular, the need for and cost associated with implementing sophisticated Big Data and AI capabilities – insurers will likely need to address the Internet of Things in the coming years to keep pace with their competitors. Insurers can leverage insights from IoT devices for improved risk assessment, underwriting, and fraud detection, among other benefits, as well as provide new types of value to policyholders, including bundled services and risk monitoring/mitigation services.

In a new research report, Operationalizing IoT in Insurance, Novarica provides a detailed overview of the current state of IoT in insurance, a framework for insurers trying to conceptualize IoT opportunities developed by research partner IoT Insurance Observatory, and best practices and key issues for acquiring, analyzing, and acting on data gathered from IoT programs.

“Insurers have a unique position relative to IoT opportunities compared to other types of businesses, because the same data used to deliver services also allows insurers to improve the efficiency and efficacy of the insurance product itself,” said Chuck Ruzicka, Vice President of Research & Consulting and lead author of the report. “In other words, bundled services and other kinds of value-adds are a natural fit with the rest of an insurer’s business plan, because insurers already want detailed, personalized information to improve their risk rating, underwriting, fraud detection, and claims administration. In turn, offering services to the policyholder encourages them to share more information with the insurer.”

Access The Full Report

The full report is available online from Novarica.

For more on this topic, listen to the recording of a recent webinar titled “IoT and Insurance: Operationalizing Innovation,” co-presented by Novarica President & CEO Matthew Josefowicz and IoT Insurance Observatory Founder & Director Matteo Carbone.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.

SOURCE: Novarica

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