Four Ways The Iot Will Disrupt The Insurance Industry

THE INSURANCE OF THINGS

Big Data is valuable, but only as long as it’s actionable.

01

03

02

04

18 Billion Connect DevicesBusiness Insider1 estimates that there will be

18 billion connected devices by 2018.

Establish New DialogueThis horizontal distribution of the IoT allows insurance companies to establish a new

dialogue with their customers.

4.3 Devices Per PersonOn a consumer level, Strategy Analytics2

claims we will have 4.3 smart devices per person on the planet by 2020.

Tailor-made SolutionsThe distribution also allows them to design

tailor-made solutions based on IoT based analytics.

1. It’s Happening Now IoT is becoming more common in the insurance world.

78% of insurance customers are willing to

share personal information for faster

claims and lower prices (Accenture3)

Customer Willingness

Insurers are trying to respond by innovating policies and claims.

Innovate Policies

Making insurance plans more integrated to smart devices gears innovation.

Integration with Smart Devices

From “risk insurers” to “smart companions”

toward IoT integration

Transformation

1. It’s Happening Now Two Examples of IoT Insurance Innovation

Healthcare Insurance Free Fitness Trackersas enablers of a new generation of plans

Premium BenefitsFor customers that share a healthy lifestyle by reaching daily wellness goals

Automobile Insurance

Leading TrendsLeading the “insurer of

things” trend with Italy and UK at the top

User Based Insurance

Offering UBI by leveraging real-time IoT data.

2. From Historical Data to Risk Prevention Why is IoT-based Big Data so disruptive for the Insurance

industry?

Detect Behavioral Patterns

Detect Emerging Trends

from past behavior data to actionable insights for prevention

Shift the FocusAllows Insurers

to Process Information

3. Change or Die

STRATEGIC PARTNERSHIPSThanks to strategic partnerships

with device manufacturers, platforms and startups, insurers

can quickly integrate their business within actors of the

industry.

RESEARCHRonald Berger4 claims that by the end of 2014, 60% of top

insurers in Europe had invested in the connected car vertical, but basically none had entered the connected health or home

area.

Predict Future Events

An insurance plan feeding on connected devices data could

predict future events.

Assess RiskBy assigning a score to certain

customer’s behaviors.

Micro-Target Customers

With tailor made solutions while customers could receive

incentives if engaging in risk-reducing behaviors.

Data-Backed Plan A customized data-backed

plan approach established a far more direct channel for interaction and customer

management .

4. Tailor Made Pricing Strategies

The Insurer of Things: Auto, Health, and HomeHow Atooma Can Bridge the Gap Between the IoT and

Insurance

Connected CarSmartphone apps, plugged black boxes, connected vehicle’s sensors

WearablesFitness trackers, smartphone sensors (gyroscope and accelerometer)

Connected HomeCamera, app platforms, home kit devices

Connected CarNotifying the customer when he is

approaching a certain risk threshold, real-time data to access accidents context or theft

WearablesAnalyze health condition and behavior, customer wellness, and improve patient management with

contextual notifications or predictive alerts

Connected HomeDetect presence of intruders, noise,

smoke, water (leaks or floods), and fire, and monitor the air

Key Enablers Examples

Key Takeaways On The Insurer of ThingsAn insurer has two ways to face the challenge

Option 01

Partner with startups and companies that are working as IoT enablers and owners and then link their policies to this resourceful stream of data in order to delivery integrated solutions

Option 01

Atooma is a key enabler for both Option 01 and Option 02. Thanks to a fully integrated white label solution, Atooma provides an embedded prediction engine that enables the insurer to fully embrace all advantages brought by the Internet of Things.

Atooma’s Can Help

Option 02

Build your own leading IoT ecosystems by capturing data from various proprietary IoT devices, improve their services and monetize by selling to third parties.

Option 02

Solution

Research for the Digital Age

WANT TO LEARN MORE? CHECK OUT OUR REFERENCES

2

1

4

3

Data and Analysis

The Connected Home: New opportunities for property and casualty insurers

Ronald Berger

THE INTERNET OF EVERYTHING

VISIT OUR BLOG TO READ THE FULL REPORT

Share on:

DISRUPT THE INSURANCE INDUSTRY

Connect with us.