IoT and Insurance Sector: Allies or Rivals

By CIOReview | Monday, February 5, 2018

Internet of things (IoT) is here to stay and is going to change the way we live, work, and do business. It is anticipated that all the devices, we use today such as mobile phones, home appliances, and many others are going to get connected to some network by 2020. And with that, the world would metamorphose into a digital village, conjoined by the network of internet and connected devices. When such implication is apparent, it is quite evident that IoT would hurt few business sectors. One of the areas that probably would be bitten by the IoT revolution early on is insurance. With the advent of connected health monitoring devices, the chances of ailments have been greatly reduced. Even the motor industry is anticipated to implement advanced driver assistance systems that would lessen the chances of road accidents. There are other instances, which point towards the fact that IoT devices are gradually making insurance seem irrelevant. And it is bound to hurt the mainstream insurance business.

However, the circumstance is not as gloomy as it sounds. With proper policies, steps in the right direction, and right investments, the Insurance industry can tip the scale in its favor. Cybersecurity, for one, can be the new turf for insurance organizations. Cybercrime has proliferated vociferously in the last decade, and with a swath of connected devices, a medium scale attack can have cataclysmic repercussion. Therefore, insurance against cyber crimes can prove extremely beneficial for insurers. This, however, is just one of the areas wherein the insurance sector can cash in. There are many such opportunities that await the landscape. And with proper planning and an innovative mindset, insurance organizations will be able to sail through the narrows without much trouble.