Technical Insight
THE PATH TO NEXT GENERATION PLATFORM FOR IOT-POWERED INSURANCE DOMENICO MANGIACAPRA, Henshin Group TOMASO MANSUTTI, Wefox
Disruption and innovation in the insurance world
used to typically occur at point-of-sale, that a typical household uses. claims and renewal periods. Now, with the Considering predictions of analysts use of wearable devices, home automation Two current trends are significantly and industry experts, it is reasonable to and telematics, insurers can connect reshaping the global insurance industry: assume that by 2025 each of us will have at with customers on an ongoing basis and IoT technologies and Sharing Economy. least fifteen connected IoT devices, leading providing valuable feedback – and pricing – Internet of Things (IoT) is profoundly to an exponential increase in data. Given based on activity levels. transforming the insurance sector these estimates, it is not hard to understand If this growth trend continues at the because, for the first time, all actors in the how the impact of IoT technologies will current rate, as estimated in the recent ecosystem – customers, insurers, and the be greater on the insurance industry – report published by Transforma Insight various stakeholders in other industries compared to other industries – which has (2020), global IoT market is expected – can be directly connected. Products, always been data-centric and data-driven. to grow to 24.1 billion devices in 2030, tools, services, people, and organizations Insurance companies around the world generating $1.5 trillion annual revenue, a are now fully capable of connecting and have long relied on historical data from compound annual growth rate (CAGR) communicating with each other through policy administration solutions, claims of 11%. Thisprimarily, means that IoTthen connectivity sensor networks. applications Smart and billing in smart a variety of areas: Connected Car Smartmanagement Manufacturing, City, will become pervasive, as sensors will be A remarkable example is customer systems to make informed decisions about Smart Home, Connected Health, andinConnected embedded the largest numberPublic of vehicles,Administration. relationships today. Connecting with risks, customers and more. What has buildings, appliances, and wearable devices customers has never been so easy. Contact changed recently is the availability of huge
INTERNET OF THINGS MARKET SCENARIOS 2019-2030
Source: Transforma Insights (2020)
A second significant trend that is a source of disruptive innovation in the insurance 10 | Telematics Wire | March 2022
industry is the Sharing Economy. The Sharing Economy, also known as collaborative
