The Internet of Things (IoT)—the network of intelligent machines and devices which can sense and interact with each other over the Internet—has, quite literally, hit home. Devices that automate, monitor and control individual homes are proliferating. By 2016, the global connected home market is expected to reach $235 billion.
For insurers, the IoT can provide value in the form of new insurance models and products—based on deeper insight into the customer’s needs—and a higher level of customer satisfaction derived from dynamic risk monitoring and improved claims handling. The IoT also creates opportunities for insurers to lower costs and improve operational efficiency.
This report looks at the complex connected home ecosystem, the potential for insurers, and the steps they should consider to take advantage.