The IoT Creates New Insurance Product and Service Opportunities
The Internet of Things (IoT) encompasses a continually increasing number of interconnected objects that have IP-addressable sensors embedded in or attached to them. Similar to a natural ecosystem, the IP capabilities enable IoT objects to sense and respond to other IoT objects and the surrounding environment. More importantly, the IoT will expand over time until it becomes a digital layer of web-connected objects around the globe. As this new web of objects radiates outward, insurers are faced with opportunities to create new insurance coverage and two major types of value-add services: services tied to insurance coverage or services that stand alone from insurance coverage.