From fitness trackers to drones, how the Internet of Things is transforming the insurance industry

Reduction In US Crashes Between Trucks With Vs. Without Safety Systems

The ability to bring internet connection to nearly every type of consumer device will have huge implications for the insurance industry over the next five years. Insurers looking to cut costs, improve business practices, and better assess clients’ risk levels, will increasingly invest in the Internet of Things (IoT).

Some auto and health insurers are already offering a new type of insurance — usage-based insurance (UBI) that uses IoT devices to track clients’ activity and offer discounts or rewards for healthy and safe behaviour. We expect 17 million people will have tried UBI auto insurance by the end of this year.

In a new report from BI Intelligence, we examine the impact of the IoT on the insurance industry. From free fitness trackers to track individuals’ exercise habits to drones to assess damages in unsafe post-disaster conditions, we analyse current US insurance markets — including the auto, health, life, and property insurance markets — and look at ways insurers are integrating IoT devices.

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Here are some key points from the report:

In full, the report:

  • Forecasts how much auto insurance companies will save from advancements in car safety technology.
  • Identifies potential barriers that could keep consumers from adopting UBI insurance policies.
  • Examines how various insurance companies are already utilising the IoT.
  • Analyses how startup insurance companies are optimising the use of IoT devices.
  • Discusses how consumers will benefit from insurance companies utilising the IoT.

To access the full report from BI Intelligence, sign up for a 14-day trial here. Members also gain access to new in-depth reports, hundreds of charts and datasets, as well as daily newsletters on the digital industry.

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