Insurers turn to new IoT use cases
Almost half (45%) of insurance executives surveyed in a new Accenture report said that IoT devices will drive new revenue for them in the next three years, and they are starting to look at areas where they can leverage IoT devices to gain that revenue. So far, insurers have been aggressive in using telematics for usage-based car insurance. But there are many other areas of insurance that could be impacted by IoT technologies, and Accenture’s survey indicates that insurance executives are increasingly exploring these other opportunities.
Last year, the same Accenture survey found that only 14% of insurance executives were interested in using smart home or building technologies in their home insurance or building insurance plans, and only 10% of them were interested in using fitness wearables in their health insurance plans. This year, those numbers took a big jump: 39% of the 414 respondents said they’re interested in using IoT technologies in their home insurance and building insurance plans, and 39% said they're interested in using wearables in their health insurance plans.
To take advantage of these new technologies, insurers are also investing heavily in analytics to crunch the data from these IoT devices. Almost half of the executives surveyed said they have launched or are piloting programs that use big data analytics tools. Additionally, 58% of respondents said it is a high priority for their organizations to use analytics at the point of sale, to deliver real-time insights while an insurance agent is interacting with the customer.
We believe that IoT technologies, combined with data and analytics,
will have a massive impact on insurance, particularly the health
insurance market. There is a great deal of demand among consumers for
health and fitness data from wearables, and we believe consumers would
jump at the opportunity to provide that data to their insurer if it
would lower their premiums.