Internet of Things and insurance
Connected car, home and health technologies could substantially change insurers' value proposition. 60% of European top insurers have launched connected car solutions, but almost none has entered the connected home or health universe. This is one of the results of our study on the Internet of Things and its implications for insurance companies ("IoT Insurance").
The case for connected car insurance solutions is currently the most obvious one. The frontrunners are Italy and the UK, where telematics play the most prominent role in motor premiums. For customers there is a saving potential, while insurers can benefit from improved risk selection.
For connected health, the "quantified-self" tools drive the demand. Connected health insurance could add significant value to customer relationships. However, regulatory constraints on the use of data may be a tough barrier to overcome. Privacy is the main concern.
Preparing themselves for the next 2-3 years, insurers need to define and implement a specific IoT roadmap.