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The Power of the Internet of Things in Commercial Insurance
Article

The Power of the Internet of Things in Commercial Insurance



Editorial Rating

9

Qualities

  • Innovative
  • Applicable
  • Overview

Recommendation

Thoughts about insurance usually come at the end of an endeavor, following equipment installation, when a system is already built and ready to run. Thus, the insurers traditional and current function has been to get involved once at the beginning, to sell a policy, then later, but only when things go wrong. The Internet of Things (IoT) might change that. At the very least, IoT data will make it easier to evaluate claims and give quotes, and according to this special report from the Boston Consulting Group, IoT technologies may make the difference between profitability for early adopters, and loss for those who can’t keep up.

Take-Aways

  • Insurers already have a convenient position that could put them at the center of Internet of Things (IoT) ecosystems, applying IoT data to ease almost every part of the insuring process.
  • IoT equipment can mitigate risk by alerting management to dangerous conditions, damaged equipment or fatigued workers, ultimately reducing payouts.
  • Insurers can get started by creating a digital learning team, experimenting, then cultivating external partnerships with companies that can provide access to IoT data.

About the Authors

Giambattista (“GB”) Taglioni, Christian Reber, Nathalia Bellizia and Wallrick Williams are professionals with the Boston Consulting Group.