Internet of things – the gamechanger?

The internet of things is a game changer for the insurance industry, according to Ben Rose, lead consultant & engagement leader at Aon Inpoint.

Speaking at a panel on ‘Technology shaping industry’ at this year’s ILS Convergence conference on Bermuda, Rose said that according to one estimate there will be an estimated 26 billion devices that will be connected to the internet, ranging from fridges and kettles to computers, by 2020, with customers paying an estimated $310 billion a year on them.

According to Rose this is creating an internet of risks, which will impact a wide range of topics, such as security, health, utilities, mobility, government and business.

However, he also stressed that insurance was still working out how to deal with this and that whilst some insurers had tried to look at it from a transactional basis, pricing things differently had not really worked so far.

Instead he said that the internet of risks could enable better propositions with the right infrastructure and that risk transfer could be a differentiator.

Rose also stressed that as more and more devices are connected insurance itself will become faster as more information – including the time and place of an accident for instance – is shared.

He also added that so far there are only a relatively small number of insurers who are pioneering their own solutions in this area of the market. Far too many others, he said, are either just observing the rise of technology or remaining entirely passive – and that this was creating an opportunity for other companies to enter the market, such as insurtech firms or new entrants.