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.
CES: So long, and thanks for all the beer!
Last week, the Las Vegas expo showed off its fun side with state-of-the-art technologies for enjoying beer, writes BRYAN TURNER
From craft beer-making machines to robots that pour beer, CES had more beer than usual in Las Vegas last week. And even free beer if you found the right stand. Stampede’s saloon-style booth offered beer to visitors who tried out its latest drones, virtual reality, and other gaming products. No beer tech, though.
Here are some of the beer technologies that stood out:
LG HomeBrew – Craft beer made at home
LG’s HomeBrew craft beer-making machine, debuted at CES 2019, brings the brewing process home thanks to single-use capsules, a self-cleaning feature, and an algorithm optimised for fermentation.
Like a Nespresso coffee machine, the beer maker uses capsules, which contain malt, yeast, hop oil and flavouring. At the press of a button, LG HomeBrew automates the whole procedure from fermentation and carbonation to ageing. A companion app lets users check HomeBrew’s status at any time during the process, from their handsets.
The beer machine not only offers a simple way to make craft
Designed with discerning beer lovers in mind, HomeBrew allows for in-home production of batches of more than 4 litres of beer in a variety of styles. The following five distinctive, flavoured beers are available now:
- Hoppy American IPA
- Golden American Pale Ale
- Full-bodied English Stout
- Zesty Belgian-style Witbier
- Dry Czech Pilsner
The only catch? It takes about two weeks to make, depending on the beer type.
“LG HomeBrew is the culmination of years of home appliance and water purification technologies that we’ve developed over the decades,” said Dan Song, president of LG Electronics Home Appliance & Air Solutions Company. “Homebrewing has grown at an explosive pace, but there are still many beer lovers who haven’t taken the jump because of the barriers to entry, like complexity, and these are the consumers we think will be attracted to LG HomeBrew.”
Click here to read about the party speaker that holds beer and robots that pour beer.
CES: Alienware gets Legend-ary
At CES in Las Vegas last week, Dell’s Alienware released a family of high-end, thin, light, and affordable machines for both amateur and professional gamers – and a new identity.
Alienware marked CES 2019 as a brand milestone with the debut of a new design identity, Alienware Legend. It aims to set a new bar of excellence for what gamers want most – performance and function. Alienware says it evaluated multiple concepts and chose one that was the biggest and boldest departure from its current look.
Alienware Legend, says the company, stays true to the brand’s core design tenets, taking cues from its deep roots in sci-fi culture and its early industrial designs, to distinguish the brand from the rest of the industry. The new Legend design is optimised with cutting-edge thermal cooling technology to achieve and sustain overclocking power, improved AlienFX lighting, and ultra-thin screen borders. It also unveiled a new “three-knuckle hinge” design that reduces the overall dimension while creating a stronger assembly, all combining to yield a better gaming experience.
“We’re excited to come to this year’s CES with some truly groundbreaking products, next-gen software and strategic partnerships that will bring more people to experience PC gaming and advance the industry,” said Frank Azor, vice president and general manager of Alienware. “The legend design answers the call for more and better from our gaming community, and the new G Series laptops will make PC gaming even more accessible to those looking for high-performance gaming at a cost they can appreciate.”
Click here to read about Alienware Legend in action with the Area-51m and m-series laptops