Insurance companies that innovate and digitally transform see higher growth and profitability. A study of 200 insurers found those with higher digital maturity levels had higher premium growth and lower combined loss ratios. An example is given of a US insurer that invested in an IoT-based risk mitigation solution for properties, reducing expected losses by $4.5 for each dollar spent, with a 300% ROI. Developing insurance IoT capabilities takes a long-term, holistic approach through successive initiatives to develop necessary skills over time. The IoT Insurance Observatory think tank promotes profitable IoT adoption in insurance through knowledge sharing, research, and publishing.

1. 1
Why have we to talk about insurance innovation?
…because those who innovate obtain superior results
The higher the innovativeness,
the higher the growth and profitability
Created by popcornarts
fromthe Noun Project
Study on 100 international P&C companies
The higher the digital maturity,
the higher the growth and profitability
Created by popcornarts
fromthe Noun Project
“Insurers leverage innovation for financial strength”
by AM Best (2022)
INSURANCE DIGITAL MATURITY STUDY
by ACORD & Microsoft (2022 edition)
95.5 95.4
96.9
11.9
9.1
7.9
0
2
4
6
8
10
12
14
94
95
96
97
98
Minimal
Innovators Moderate
COR
5yr Avg Combined
Ratio (%)
5yr Avg Change
in NPW (%)
High
low
Digital maturity
Combined, the 200 largest insurers in this study represented approximately
$3.5 trillion in premium in 2021, comprising 63% of global market share.
122.1
112.8
94.0
98.0
81.7
100.9
Indexed Relative Profit
Study Average
Premium
(CAGR)
7.6%
4.3%
3.9%
7.6%
6.1%
Premium growth

2. 2
1.39
0.97
1.38
0.90
0.38
0.23 0.39
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.005
0.19
Root Lemonade
Wefox* Hippo
0.36
Charity give back
All other expenses
Marketing and sales
Loss ratio
1.34
0.46
$
An US mutual insurer has experimented and integrated in its loss
control activities an IoT-based real-time risk mitigation solution
In the last 5years the solution have been installed in
more than 10,000 insured properties
For each dollar invested in this prevention solution
has been reduced the expected losses by $4.5
+300%
ROI
Incumbents did it better!
Insurtech vs profitability
Source: IoT Insurance Observatory based on public data * Wefox Insurance AG (no available split between marketing and sales vs other expenses
2021 data

3. 3
Insurance IoT is a capability, not a product or an It project
Initiative after initiative, you will develop and reinforce the necessary capabilities
Target customers
Insurance IoT use cases
Go to market
Value proposition
(insurance)
IoT
capabilities
development
Leadership
capabilities
development
Source: IoT Insurance Observatory
INSURANCE IOT ROADMAP
Time
Connected
policies
First
pilot
Roll-out
on a niche
Extend to
other
niches
Scale-up
the portfolio
What else
can we do
with this IoT
data?
ILLUSTRATIVE
Each initiative should be seen as one further step in the overall journey
to develop the necessary capabilities and to master the IoT usage in your company

4. 4
Be realistic:
99% of the
change
means that
YOU
have to
change...
Source: Innovation is change, Myszkowski, ©IdeasInside. IoT Insurance Observatory plenary session, October 2022

5. 5
Our figures
I want thank all the think tank members for the knowledge
they have shared over these seven editions
All these contents come from the IoT Insurance Observatory discussions
Insurance IoT
Wisdom Sharing
Constant
Scouting
HOLISTIC
INTEGRATION
STRUCTURED
USAGE
CONNECTION
COLLECTION
RESEARCHING
Information
Organization
INTERPRETING REFLECTING
Knowledge
Development
STORYTELLING
insurance
companies,
including:
4 of the top 5
Reinsurers
11 of the top 15
European
Insurance Groups
10 of the top 15
US P&C Insurance
Groups
hours of
one-to-one
workshops over
the five annual
editions of the
Observatory
2739
plenary
symposiums
between North
America and
Europe
32
international
publications
7 tech players and
vendors
51
87
Our approach

6. 6
The 2023
Observatory
members
The Observatory mission is to promote a profitable IoT adoption in the
insurance sector
If you are interested in joining, feel free to reach me out
at matteo.carbone@iotinsobs.com