Insurance companies are similar to companies in other industries in that they worry constantly about sources of new growth. Accenture research indicates that the Industrial Internet of Things (IIoT) could contribute $14.2 trillion to world output by 2030; but, the study indicates, these potential gains are at risk because neither companies nor governments are taking sufficient actions to put in place the conditions necessary for the wide adoption of new digital technologies.
Some companies are having difficulty figuring out how the IIoT can generate new revenue streams, but that should not be a problem for insurers. In industrialized countries such as the US and Canada – countries with the infrastructure, skills and institutional foundations required to support the adoption of new technologies – insurers are mobilizing to use the IIoT for more accurate pricing, better underwriting, and improved risk management.
To take one example, the use of Unmanned Aerial Vehicles (UAVs) or drones is (pardon the pun) taking off in Canada. UAVs can survey farms, evaluate soil conditions and send information back to farmers who can apply pesticide, water or fertilizer only to areas in need. Farmers get better yields, and, armed with this data, insurers can provide more accurate premium pricing and potentially attract new customers.
For more information:
- Download Accenture’s research report, Winning with the Industrial Internet of Things
- Download Accenture’s research report, Driving Unconventional Growth through the Industrial Internet of Things