Capitalizing on the Internet of Things (IoT)
Challenges and Opportunities for Insurers and Automakers
Advances in Big Data technologies and the increasing use of sophisticated analytics to solve business challenges has established a foundation for the Internet of Things (IoT). IoT solutions expand on the Big Data concept, harvesting massive volumes of data through sensors and edge devices and then applying analytics to this data for practical applications. IoT provides ways to improve home security and convenience, influence our health and well-being, make automotive travel safer and more efficient, add to everyday activities in a way that informs, guides, and—in the best examples—delights.
Applied to insurance, the Internet of Things can become a mechanism to open up new opportunities and develop new programs. Applied to vehicles and transportation, particularly in the case of the connected car, it combines personalized entertainment, intelligent route planning, emergency assistance, multiple channels of communication, improved maintenance and operational efficiency, and—through specialized apps and embedded hardware and software or added by means of smartphone connectivity—a wide range of services that can be shaped to individual needs and preferences.
Many of the pieces needed to realize the IoT vision are already in place. Others are being readied for use and prepared for mainstream application. As this point—in the early stages of IoT maturity—the possibilities are substantial and expansive. As a differentiator in the market, IoT capabilities offer numerous chances to draw on innovation and invention, making it possible to develop products and services that can provide a strong competitive advantage to organizations that move quickly. As with any new technology, the direction will be shaped and controlled by the pioneers who gain the expertise and enter the market early, before it becomes saturated.
This whitepaper provides an introduction to IoT and showcases some of the opportunities that it affords, giving insurers a means to expand their book of business and OEMs a glimpse of how IoT will re-energize and reshape personal travel. We also provide examples of how IoT is already being used, as well as blue-sky imaginings of how it can be used as the supporting technologies are refined. A fair measure of knowledge and expertise is required to participate in the IoT ecosystem and this paper outlines the factors that are leading to the formation of a marketplace around IoT that will open numerous opportunities.
IoT White Paper – Table of Contents:
- The Nature of the Internet Of Things
- The Five Keystones of IoT Continuity
- Technical and Policy Challenges
- Standards and Interoperability
- Harnessing Data Effectively
- Agnostic Approach To Standards
- Portability Of Data
- The Working Ecosystem
- Case Study for IoT: Insurance Opportunities – Expanding the Book of Business
- Example: Life Insurance Discounts Based On Fitness Tracking
- Case Study: OEM – The Promise of the Connected Car
- Example: Road Usage Charging
- Additional Examples
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