As the Internet of Things matures, insurers’ success in benefitting from a world of connected devices depends on how much digital trust consumers have in them.

From wearables to connected vehicles and homes, the IoT is generating an unprecedented amount of data: Real-time, individual data that can add value across the insurance lifecycle. For example, connected home data and alerts can help insurers prevent or mitigate risks before they become expensive or complex claims—and with the benefit of actual data from the policyholder, insurers can offer a faster, more transparent claims experience.

But all this hinges on customers being confident and willing to share their personal data. And as we’ll see in this Insurance Insight of the Week, there’s work to be done on that front.

More than half of consumers are not confident in the security of their personal data

The data security issue can have far-reaching consequences for insurers, especially as more players enter partnerships or join digital platforms. In principle, these partnerships can help insurers broaden their market, become part of customers’ day-to-day lives and deliver better outcomes. But those benefits are only possible when customers trust the businesses they’re working with—so insurers should choose their partners accordingly. Many thanks to Accenture Digital and especially my colleagues, Robin Murdoch and Paul Johnson, for sharing their findings in Digital Trust in the Internet of Things Era (PDF).

Digital trust is paramount as the IoT matures

Click the image above for a large version of the Insurance Insight of the Week.

The platform economy and digital trust are both trends as identified in Accenture Technology Vision 2016. The insurance industry report is launching shortly; in the interim, I invite you to read the cross-industry report to see how digital is reinventing the world again and again. Download Accenture Technology Vision 2016 and our  Insurance specific report.

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