The London #Insurtech community got an overview of 30MHz and the opportunities around IoT in insurance at the London Market TOM Innovation Exchange/InsTech London event on Tuesday 29 November.
In this article Nathan Griffiths of 30MHz talks about what IoT and data could mean for insurance. I remain unsure on this topic. While I am CERTAIN that IoT will make a major difference to risk management, I remain to be convinced that it will be driven by the insurers.
My feeling is that the case is compelling enough for companies to 'do IoT to themselves' rather than wait until the carriers incentivise them to.
Where the insurance companies could have a role - and this would be different to their current core proposition - is as a trusted information broker, where they can use their actuarial and analytical expertise to see what the amalgam of many different companies' data is telling us.
If this is the direction things go, the question then comes as to whether carrier can beat the broker at this game, or whether new data-driven risk management companies come in, selling risk mitigation services without the classic insurance payout sitting on the back-end?
The insurance industry as an IoT leader Given the scale and breadth of customers and the clear synergies between the goals of the insurer and their business customers, the insurance industry could position itself at the forefront of the connected world. Could IoT offer an entirely new commercial opportunity for insurers that is huge in scale? The question should instead be “Why Not?”. The industry has unparalleled distribution. And it has an immense capacity to handle and utilize data.