Internet of Things (IoT)

What is Internet of Things (IoT)? #

The Internet of Things (IoT) has numerous applications across various industries, enhancing how businesses collect and utilize data. In the insurance sector, most IoT innovations are seen in Property and Casualty (P&C) insurance. Examples include smart home devices, like water leak sensors and security systems, that help insurers mitigate risks, or connected cars using telematics to track driving behavior for usage-based insurance. Additionally, drones are increasingly used for claims assessment in areas impacted by natural disasters, improving efficiency and reducing costs.

For life insurance, one of the most interesting use cases for IoT is the integration of wearable health devices, such as fitness trackers and smartwatches. Insurers, like John Hancock, are leveraging these devices to transform their engagement with clients through wellness programs. For instance, John Hancock’s Vitality program incorporates wearable technology to track policyholders' health and lifestyle habits. Policyholders are encouraged to live healthier lives by earning points for activities such as exercising, eating well, and undergoing regular health screenings. These points can lead to premium discounts, gift cards, and other rewards, fostering a more proactive and personalized relationship between insurers and their clients. This shift towards wellness-driven insurance not only benefits customers but also helps insurers manage risks more effectively by promoting healthier behaviors.