In an era where innovation is reigning supreme, the insurance industry has found itself on the precipice of transformative change. Long accustomed to traditional models of risk assessment and policy pricing, insurers are now embracing the disruptive potential of Internet of Things (IoT) and telematics technologies. These cutting-edge tools offer unprecedented insights into policyholders’ behaviour and assets, revolutionising the way insurers evaluate risk and tailor coverage.
The IoT insurance market is witnessing significant growth, with an estimated value of approximately $49.40bn in 2024, according to Mordor Intelligence, and projections indicate that this figure is expected to rise to $76.73bn by 2029.
This growth trajectory is fuelled by several factors, including the expansion of the insurance sector alongside the adoption of innovative insurance models. Additionally, the increasing utilisation of IoT technologies to mitigate premium and risk-related costs is further driving the market’s expansion.
With this in mind it is no wonder that numerous key industry players are keen to incorporate the tools into their products’ arsenal.
As part of FinTech Global Academy’s Professional InsurTech Certificate, a host of industry experts weighed in on the technology’s potential to reshape the insurance landscape, offering invaluable perspectives on the opportunities and challenges that lie ahead.
Paul Middle, Vice President of Insurance, Global at Sentiance, is among the numerous industry experts who have shared their insights on the potential of IoT and telematics. According to Middle, these technologies have the power to serve as catalysts for fostering a significantly more content and well-informed customer base.
“I’ll start with its impact on the consumer because I think it’s important that we all begin in that space. This sector doesn’t work if the customer doesn’t want the products that we ultimately offer. But I think what it’s done for the customer is it’s bringing some relevance to them. So from the insurance market, I’m thinking about new products like low mileage telematics, enabling customers to buy products that they think are more relevant to them. So it’s bringing propositions to customers that the insurance industry couldn’t necessarily offer before.
“I think for the insurers, it gives us the ability, if we’re thinking about devices in vehicles or devices in buildings, to see more of the risks that we’re underwriting, and ultimately, therefore, to risk manage that in a much more effective and efficient way. And to a certain extent, this clearly swings into the customer to create a model where we’ve got fair pricing, which is clearly a hot topic at the moment. Because the industry will be moving towards that over the coming months. But I think we are now able to, through devices and technology and ultimately data collection, present a price to the customer which is more relevant to them as a personal risk, or commercial risk on the commercial side of the business,” explained Middle.
To listen to the whole presentation, enrol in the Professional InsurTech Certificate.
About the Professional InsurTech Certificate:
The Professional InsurTech Certificate course offers a comprehensive and practical exploration of Insurance Technology (InsurTech) for professionals operating in the insurance industry. With a focus on practical applications, the course covers vital topics including the fundamentals of InsurTech, adoption strategies for insurance companies, regulatory perspectives, data analytics, customer engagement, claims processing, risk assessment, and emerging technologies like AI and ML tailored specifically for the insurance sector.
Distinguished by its holistic approach to the InsurTech landscape, this course integrates real-world case studies with insights from leading InsurTech innovators and senior leaders from insurance companies.
You can enrol here
Copyright © 2024 InsurTech Analyst
