A recent Pew report polled experts for their take on how the Internet of Things will continue to evolve over the next five to ten years. Viewpoints varied, but here are some of the possibilities, with implications for insurers:
- Nearly everything will become a piece of our web of interconnected information, reducing guesswork systemically. For companies, decision making, process design and workflows will improve. For insurers, the above is true—but also risk assessment will be exponentially refined, actuarial tables will be even more reliable and outcomes of all kinds will be more predictable.
- Technology will be available to remotely monitor every aspect of a person’s home—or any other location. For P&C insurers, the possibilities are endless. What about including smart apps within property and casualty products?
- A myriad of smart tools will connect individuals to the data stream—and gather data about their activities—second by second. For insurers, every client interaction will come accompanied by a comprehensive set of data about that client. The ability to refine and tailor insurance products to match unique and highly varied needs will be commonplace.
The possibilities are astounding, because the IoT is evolving so quickly. To succeed, insurers need to know and understand what’s on the short-, medium-, and long-term horizon. They can start by assessing their existing approach to big data and analytics—since the IoT will cause a massive proliferation in data—and their ability to apply insights to continuously improve products and services.