Seventy percent of insurance carriers agree that the Internet of Things (IoT) is important to their overall strategy, according to a 2018 LexisNexis study. But a recent EY report found that only 36% of carriers are leveraging new data sources.
This kind of data transfer from client to company relies on the IoT, an interrelated system of devices, such as vehicles or appliances, embedded with software or sensors which are connected to the internet to report insights into how we use objects in our daily lives.
There is no doubt that the impact of the IoT on the insurance industry could be revolutionary in auto, home, life and commercial lines. And with more than three-quarters of insurance customers showing a desire to share personal information for faster claims and lower premiums, according to a recent Accenture study, the gamechanger could be just around the corner.
But before the industry can make sense of the tsunami of data flooding into insurance, there are a few kinks to iron out.
(Independent Agent Magazine)