Trends In Insurance: From The Internet Of Things To Insurtech

1 Technology's Impact on the Industry

Until recently, most investments in insurance technology focused on distribution, policy administration, internal controls and security. Now, telematics, data analytics, wearables and social media are redefining virtually all aspects of the insurance industry. Emerging technologies are offering new opportunities and revenue. They may also substantially reduce losses, enabling insurers to offer lower premiums, while also creating risk through new sources of competition and the unprecedented pace of change.

The Internet of Things (IoT) — including telematics, body sensors and a variety of other monitoring technologies and smart devices — is challenging insurers to create new products, devise new pricing algorithms and underwriting methods, and revise how claims are processed.