How will Insurance Respond to the Internet of Things?

Moderator: Patrick Vice, Insurance-Canada

Clinton D’Souza, DeloitteColin Simpson, IBAODebbie Olsen, ingenieKim Opheim, AppliedHugh Fardy, CG&B

What is the IoT?

• Embedded Sensors sending environmental / activity information to …

• Data Stores which interact with …

• Analytic Engines which provide feedback/control to …

• Sensors

Sensors

Data stores(multi-media)

AnalyticEngines

Thanks to Donald Light, Celent

Personal Things• Allstate Canada offering up to 25% discounts for Rogers

Smart Home Monitoring• American Family Insurance does the same, but goes

further – Partnering with Microsoft, AmFam set up Accelerator to

provide equity financing for start ups on home automation

– Why? To “make our policyholders’ homes and lives safer.”– And …

Commercial IoT

• Property managers better understand building use– Better building design, lowering maintenance costs

• Trane: HVAC manufacturer *– Identify/resolve problems 30% faster– reduce risks of fire, water damage– transform business model from product to service

* SMA Research Brief: Internet of Things

IoT Changes The Business of Insurance

• Change in risk profiles – safer = lower premiums, softer market– More cyber-risky = different skills required

• Change in product/organizational profiles – IoT dovetails with Alternative Risk Financing, Warrantees– UBEverything = fewer underwriters and more data

scientists

• Change in business model– American Family is investing in the technology as an investment

in their customers, and itself

Panelist Questions

1. How is the information driven by telematics and IoT going to change the behaviour of insurers and brokers?

2. How will the BMS/CMS’s respond to these changes?

3. This seems like this is much bigger exposure for the broker, so what new elements do brokers need to take into account?

4. On the commercial side, what changes will the new emphasis on risk management drive in the BMS

Panelist Questions

5. On the consumer side, what engagement opportunities are the IoT and Telematics creating?

6. What do brokers need to understand about the analytics and will they bring it in-house?

How will Insurance Respond to the Internet of Things?

Moderator: Patrick Vice, Insurance-Canada

Clinton D’Souza, DeloitteColin Simpson, IBAODebbie Olsen, ingenieKim Opheim, AppliedHugh Fardy, CG&B