The IoT is seen as futuristic in the insurance sector, with many insurers hanging back, but they are not unaware of its potential to grow the insurance industry, writes ECKART ZOLLNER, Head of Business Development at the Jasco Group.
We are in the midst of a digital revolution that is fundamentally changing the way we do business, the way businesses operate, and how they interact with both customers and competitors. The world is gradually moving online in its entirety, one device – one thing – at a time. And so, the Internet of Things (IoT) is here, making waves in both the private and business sectors across the globe. The Insurance industry is not exempt from the impact of IoT and, in fact, is poised for complete disruption in the way it traditionally interacts with customers.
While it’s true that IoT is still perceived as futuristic in the insurance sector, with many insurers hanging back on full adoption until they are assured that the benefits outweigh the risks, they are not unaware of its potential to grow the insurance industry and launch it into the Digital Age.
Leveraging IoT for the insurance industry
IoT offers insurers the opportunity to leverage data from ‘Smart’, connected devices such as residential and automotive sensors; wearable technology; drones; GPS, mobile and telematics devices; ‘Smart’ appliances and more. This enables them to develop new business, improve risk assessment and proactively engage with customers on how to minimise risk for both themselves and the insurer.
High value assets can be effectively monitored through the constant relay of tracking and usage data, and dangerous conditions can more easily be identified, enabling insurers to react accordingly, potentially avoiding dangerous situations and the associated losses and damage caused to property or people.
The data collected from IoT devices, when properly collected, collated and analysed, can aid an insurer by offering predictability, helping to identify current and future trends which the insurer can then act on. Analysis of usage data will be able to pinpoint customer trends and patterns in their lifestyles, buying habits and risk portfolios.
Data accumulation over time allows for stored data to be analysed for patterns or trends for both predictive and comparative use, ensuring that insurers are on the right path and that mistakes are not repeated.
It can also assist insurers to conform and comply with legislation. The customer’s right to privacy, for ‘opt in’ and permission based policy execution, and for consent of data supervision or surveillance, has never been more important than now, with the Protection of Personal Information (PoPI) Act looming. Insurers will need to take care to moderate and control how they collect, use and disseminate data, and data storage and collection will be under the microscope.
Putting IoT to use
For insurers who are traditionally imbued with red-tape, bureaucracy and archaic siloed systems, digitalising and implementing an IoT strategy can prove a challenge. In order to be effective, IOT has to be operationalised through integration with existing business systems and workflow processes. These themselves may need adaptation to suit the introduction of digital technology and new data sources, as well as control mechanisms.
A step-by-step approach is recommended, starting with things like cloud adoption wherever it makes the most sense, and moving towards the goal of full IoT adoption.
Due to the multi-access nature of our environment today, customers expect to access service providers, like their insurer, from virtually anywhere across the platform of their choice. In order for insurers to maintain control of an omni-channel offering, they will need to integrate multiple channels through a single management platform, which will then be able to administer access rights and usage policies as required.
Monetizing IoT for insurers will ultimately come from the provision of greater efficiencies, greater data accuracy, better loss avoidance (predictability), improved compliance enforcement, and the influencing of customer behaviour. These, collectively, will serve to boost the capital growth of the insurance sector, and enhance profit margins significantly.
Navigating the challenges
Data security will be the prevailing challenge faced by insurers – in fact, any organisation or sector – looking to leverage IoT. Careful consideration of the digital strategy will need to be undertaken, prioritising end-to-end security in the overall system design. This will include data collection devices, aggregation gateways, operational platforms, back end business intelligence, and artificial intelligence/machine learning systems.
Where social networks and digital platforms are leveraged, it will be vital to establish the reliability of the data, its source and its compatibility with local compliance regulations. This data will likely only serve for indicative purposes, as it is not likely to comply across the board with legislation such as PoPI.
IoT will undoubtedly revolutionise the way that insurance is offered, brought to market, considered and chosen, and insurers should start looking at the steps they need to take to implement IoT now. The benefits are set to propel the insurance sector away from its perception as a grudge purchase, making it a value-added service that people will want to invest in. It will require, however, that insurers shake the chains of tradition and embrace the Digital Age.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.