From Risk Transfer to Risk Prevention - How the Internet of Things is Reshaping Business Models in Insurance
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The Geneva Association and the Insurance IoT Observatory looked at the transformation of traditional insurance risk transfer to technology-driven risk mitigation and prevention services.
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Insurers' journeys to build a mastery in the IoT usage
Insurance IoT is a social good!
Because:
๐ต Expected losses can be reduced structured programs with both real-time mitigation actions to solve a specific situation, and behavioral change mechanisms to promote safer behaviors (both in personal and commercial lines)
๐ต Rate can be matched to risks better:
- Smaller and more accurate pricing clusters allow a large part of profiles to receive a lower rate
- Even with the ability to price the individual probability of loss (cluster of one) the insurance foundation isnโt canceled (The risk of each policy will contribute to the expected losses of the portfolio; The premiums paid by many lucky policyholders will be used to pay the claims of the few unlucky policyholders who had an accident in a period of coverage)
๐ต IoT data can be used to increase the effectiveness and efficiency of the claim process, so improving the combined ratio ceteris paribus
โฉ Large part of the policyholders will pay less (and portfolios currently difficult to insure will become more insurable)
Insurance IoT (and telematics) is not about providing a discount
Insurance IoT (and telematics) is about creating economic value using the data and sharing part of this value with policyholders (and agents & brokers)
An integrated holistic adoption of the IoT paradigm is a game changer for your insurance business and a social good:
โพ it allows to improve the availability and affordability of insurance coverages
โพwhile allowing the sector to write a profitable business
Below you can enjoy a selection of best practices in both personal and commercial lines - written with some of the IoT Insurance Observatory members - that have already started to obtain results from their IoT business transformation journeys
IoT Insurance Observatory: summary 2024
IoT is a game changer for many insurance activity. An increasing number of success stories are emerging at a global level. The IoT Insurance Observatory is committed to support a profitable usage of IoT in the Insurance sector
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Telematics: a necessary capability for the auto insurer of the future
More Than an Observer - Carbone Still Igniting Industryโs IoT Passion
Insurance IoT Observatory is a seven-year-old think tank specialized on the insurance IoT with the participation of top executives from the most relevant Insurers, Reinsurers, and Tech players in the IoT insurance arena
The Observatory is about connecting people and ideas in order to spread the innovation culture throughout the insurance market with three concrete outcomes:
- a global multiclient research on the insurance IoT paradigm
- one-to-one workshops to each member
- plenary symposiums with all the members
The Observatory engage constantly hundreds of key executives involved in the IoT programs within the members of the think tank (including 3 of the top five European insurers, 5 of the top ten US P&C insurers, 2 of the top three Japanese insurers, the largest Australian insure, one of the top two Brasilian insurers and 3 of the top six global reinsurers).
Some figures about our seven editions:
- 2920 hours of one-to-one workshops over the five annual editions of the Observatory
- 34 plenary symposiums between North America and Europe
-7 international publications
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
State Farm's vision about the platform play and the smart home strategy is a fundamental area for any personal line insurance carrier in the future. IoT is a necessary capability, not a nice to have!
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Recommended
Insurers' journeys to build a mastery in the IoT usage
Insurance IoT is a social good!
Because:
๐ต Expected losses can be reduced structured programs with both real-time mitigation actions to solve a specific situation, and behavioral change mechanisms to promote safer behaviors (both in personal and commercial lines)
๐ต Rate can be matched to risks better:
- Smaller and more accurate pricing clusters allow a large part of profiles to receive a lower rate
- Even with the ability to price the individual probability of loss (cluster of one) the insurance foundation isnโt canceled (The risk of each policy will contribute to the expected losses of the portfolio; The premiums paid by many lucky policyholders will be used to pay the claims of the few unlucky policyholders who had an accident in a period of coverage)
๐ต IoT data can be used to increase the effectiveness and efficiency of the claim process, so improving the combined ratio ceteris paribus
โฉ Large part of the policyholders will pay less (and portfolios currently difficult to insure will become more insurable)
Insurance IoT (and telematics) is not about providing a discount
Insurance IoT (and telematics) is about creating economic value using the data and sharing part of this value with policyholders (and agents & brokers)
An integrated holistic adoption of the IoT paradigm is a game changer for your insurance business and a social good:
โพ it allows to improve the availability and affordability of insurance coverages
โพwhile allowing the sector to write a profitable business
Below you can enjoy a selection of best practices in both personal and commercial lines - written with some of the IoT Insurance Observatory members - that have already started to obtain results from their IoT business transformation journeys
IoT Insurance Observatory: summary 2024
IoT is a game changer for many insurance activity. An increasing number of success stories are emerging at a global level. The IoT Insurance Observatory is committed to support a profitable usage of IoT in the Insurance sector
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Telematics: a necessary capability for the auto insurer of the future
More Than an Observer - Carbone Still Igniting Industryโs IoT Passion
Insurance IoT Observatory is a seven-year-old think tank specialized on the insurance IoT with the participation of top executives from the most relevant Insurers, Reinsurers, and Tech players in the IoT insurance arena
The Observatory is about connecting people and ideas in order to spread the innovation culture throughout the insurance market with three concrete outcomes:
- a global multiclient research on the insurance IoT paradigm
- one-to-one workshops to each member
- plenary symposiums with all the members
The Observatory engage constantly hundreds of key executives involved in the IoT programs within the members of the think tank (including 3 of the top five European insurers, 5 of the top ten US P&C insurers, 2 of the top three Japanese insurers, the largest Australian insure, one of the top two Brasilian insurers and 3 of the top six global reinsurers).
Some figures about our seven editions:
- 2920 hours of one-to-one workshops over the five annual editions of the Observatory
- 34 plenary symposiums between North America and Europe
-7 international publications
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
State Farm's vision about the platform play and the smart home strategy is a fundamental area for any personal line insurance carrier in the future. IoT is a necessary capability, not a nice to have!
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
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IoT Insurance Observatory - Summary.pdf
Global insurance think-tank, which has put together executives from more than 50 insurance groups, Institutions and the Internet of Things ecosystem, to discuss the great potential of the most mature Insurtech trend, as well as the challenges it poses to the insurance business. The focus is on any insurance solution based on sensors for collecting data on the state of an insured risk and telematics for remote transmission and management of the data collected.
IoT Insurance Observatory 2023.pdf
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
The seven annual Observatory editions in figures:
- 2738 hours of one-to-one workshops
- 32 plenary symposiums between North America and Europe
- 87 insurance companies (including 4 of the top 5 Reinsurers, 11 of the top 15 European Insurance Groups, and 10 of the top 15 US P&C Insurance Groups)
- 51 tech players and vendors
Telematics survey
๐ฌ๐ผ๐๐ฟ ๐ฝ๐ผ๐น๐ถ๐ฐ๐๐ต๐ผ๐น๐ฑ๐ฒ๐ฟ๐ ๐ฎ๐ฟ๐ฒ ๐ฟ๐ฒ๐ฎ๐ฑ๐ ๐ณ๐ผ๐ฟ ๐๐ฒ๐น๐ฒ๐บ๐ฎ๐๐ถ๐ฐ๐โผ๏ธ
...๐ฎ๐ฟ๐ฒ ๐๐ผ๐ ๐๐ผ๐ผโ
https://www.linkedin.com/posts/matteocarbone_telematics-readiness-activity-7024698841979400192-BGYc?utm_source=share&utm_medium=member_desktop
results of the survey done by Swiss Re and IoT Insurance Observatory on 10000 policyholders.
The telematics sponsors are people who are likely or very likely to recommend a telematics motor insurance app to a friend. This cluster is equally comprised of men and women and includes mostly millennials (23โ41 years old) and people in Generation X (42โ57 years old). They love driving and walking, but they don't shy away from using public transport. Telematics sponsors represent 54% of our sample.
IoT Insurance Observatory
The IoT Insurance Observatory mission is to promote a profitable IoT adoption in the insurance sector.
The six annual editions have aggregated more than 130 organizations.
Tech players and 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
IoT Insurance Observatory
IoT Insurance Observatory is a six-year-old think tank specialized on the insurance IoT with the participation of top executives from the most relevant Insurers, Reinsurers, and Tech players in the IoT and telematics insurance arena
The think tank membership provides access to the most globally relevant insurance IoT knowledge, and its goal is to promote a profitable IoT adoption in the insurance industry.
Vitality drive white paper june 2021
Risk prevention is an IoT-based uses case able to create a positive impact to all the stakeholders: avoiding the accidents to the policyholders, improving the insurance bottom line, and generating positive externalities to the society
A (false) myth I have heard frequently at conferences is that insurers are not yet able to use IoT data to take smart actions
Instead, there are different success stories about-based risk prevention in different insurance business lines bit.ly/RiskPreventionPaper
One of the best practices in changing driver behaviors is Discovery Limited
Having seen the early steps of this approach, since itโs launch on 1 June 2011, and the journey over the following years, Iโve been always impressed by their innovation journey
Each annual product review has been a thought-provoking presentation: I consider myself extremely luck for this opportunity to learn directly from Anton and Francois and all the team
#Insurtech case histories are frequently fascinating storytelling and make people feel self-satisfied, instead in this paper you will find facts and figures about prevented accidents and profitable auto #insurance portfolios
I love this #telematics story...concrete and fact based!
From Risk Transfer to Risk Prevention
The world is now hyperconnected. Insurance of the future will use data to enhance customer experiences, impact core insurance processes, create new knowledge and improve sustainability. There are already pioneers in this space, and their stories demonstrate the powerful and increasing role of IoT data in better risk prevention
A new insurance paradigm for the hyperconnected world
IoT adoption is a strategic choice that requires a multi-year commitment to develop the specialistic insurance IoT competencies and the leadership competencies needed to transform the way business is currently being done.
Although IoT has not yet been systematically addressed by the large majority of insurers, several early adopters have already concretely demonstrated the potential of using this technology in the insurance sector.
These successful player journeys show IoTโs extraordinary potential to generate value for insurers, policyholders, and even the entire society.
Insurance IoT is a new way of thinking about the activity of assessing, managing, and transferring risks. This new way of thinking for the insurance business fits with a world that is going to be more and more hyperconnected, a trend that insurers can neither stop or ignore.
IoT Insurance Observatory 2021 edition
The IoT Insurance Observatory is a four year old think tank specialized in insurance IoT
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
IoT Insurance Observatory 2020
Global think talk focused on the usage of IoT data in the insurance sector, both in Europe and North America
Connected and Sustainable Insurance
Connected insurance represents a new paradigm
for the insurance business that allows a new virtuous role for society
2020 IoT Insurance Onservatory
Global Insurance think tank focused on IoT usage in the insurance sector
IoT insurance lessons learned
IoT insurance best practices and pitfalls what have been learned working with more than 110 players in 15 different countries
IoT Ins Obs '19
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Smart Home Insurance
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of โmust-haveโ elements for an insurer in order to deliver the promise of a smart home value proposition.
IoT Insurance Observatory 2019
The think tank membership provides access to the most globally relevant IoT insurance knowledge
#IoTinsObs
2019 IoT Insurance Observatory
The think tank membership provides access to The most globally relevant insurance IoT knowledge
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Let's demystify the IoT insurance fake news.
Lesson learned through the work with more than 100 insurers, reinsurers and tech players in 15 different countries.
IoTinsObs
The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 50 prestigious organizations โ Insurers, Reinsurers and Tech players โ have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
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IoT Insurance Observatory 2023.pdf
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
The seven annual Observatory editions in figures:
- 2738 hours of one-to-one workshops
- 32 plenary symposiums between North America and Europe
- 87 insurance companies (including 4 of the top 5 Reinsurers, 11 of the top 15 European Insurance Groups, and 10 of the top 15 US P&C Insurance Groups)
- 51 tech players and vendors
Telematics survey
๐ฌ๐ผ๐๐ฟ ๐ฝ๐ผ๐น๐ถ๐ฐ๐๐ต๐ผ๐น๐ฑ๐ฒ๐ฟ๐ ๐ฎ๐ฟ๐ฒ ๐ฟ๐ฒ๐ฎ๐ฑ๐ ๐ณ๐ผ๐ฟ ๐๐ฒ๐น๐ฒ๐บ๐ฎ๐๐ถ๐ฐ๐โผ๏ธ
...๐ฎ๐ฟ๐ฒ ๐๐ผ๐ ๐๐ผ๐ผโ
https://www.linkedin.com/posts/matteocarbone_telematics-readiness-activity-7024698841979400192-BGYc?utm_source=share&utm_medium=member_desktop
results of the survey done by Swiss Re and IoT Insurance Observatory on 10000 policyholders.
The telematics sponsors are people who are likely or very likely to recommend a telematics motor insurance app to a friend. This cluster is equally comprised of men and women and includes mostly millennials (23โ41 years old) and people in Generation X (42โ57 years old). They love driving and walking, but they don't shy away from using public transport. Telematics sponsors represent 54% of our sample.
IoT Insurance Observatory
The IoT Insurance Observatory mission is to promote a profitable IoT adoption in the insurance sector.
The six annual editions have aggregated more than 130 organizations.
Tech players and 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
IoT Insurance Observatory
IoT Insurance Observatory is a six-year-old think tank specialized on the insurance IoT with the participation of top executives from the most relevant Insurers, Reinsurers, and Tech players in the IoT and telematics insurance arena
The think tank membership provides access to the most globally relevant insurance IoT knowledge, and its goal is to promote a profitable IoT adoption in the insurance industry.
Vitality drive white paper june 2021
Risk prevention is an IoT-based uses case able to create a positive impact to all the stakeholders: avoiding the accidents to the policyholders, improving the insurance bottom line, and generating positive externalities to the society
A (false) myth I have heard frequently at conferences is that insurers are not yet able to use IoT data to take smart actions
Instead, there are different success stories about-based risk prevention in different insurance business lines bit.ly/RiskPreventionPaper
One of the best practices in changing driver behaviors is Discovery Limited
Having seen the early steps of this approach, since itโs launch on 1 June 2011, and the journey over the following years, Iโve been always impressed by their innovation journey
Each annual product review has been a thought-provoking presentation: I consider myself extremely luck for this opportunity to learn directly from Anton and Francois and all the team
#Insurtech case histories are frequently fascinating storytelling and make people feel self-satisfied, instead in this paper you will find facts and figures about prevented accidents and profitable auto #insurance portfolios
I love this #telematics story...concrete and fact based!
From Risk Transfer to Risk Prevention
The world is now hyperconnected. Insurance of the future will use data to enhance customer experiences, impact core insurance processes, create new knowledge and improve sustainability. There are already pioneers in this space, and their stories demonstrate the powerful and increasing role of IoT data in better risk prevention
A new insurance paradigm for the hyperconnected world
IoT adoption is a strategic choice that requires a multi-year commitment to develop the specialistic insurance IoT competencies and the leadership competencies needed to transform the way business is currently being done.
Although IoT has not yet been systematically addressed by the large majority of insurers, several early adopters have already concretely demonstrated the potential of using this technology in the insurance sector.
These successful player journeys show IoTโs extraordinary potential to generate value for insurers, policyholders, and even the entire society.
Insurance IoT is a new way of thinking about the activity of assessing, managing, and transferring risks. This new way of thinking for the insurance business fits with a world that is going to be more and more hyperconnected, a trend that insurers can neither stop or ignore.
IoT Insurance Observatory 2021 edition
The IoT Insurance Observatory is a four year old think tank specialized in insurance IoT
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
IoT Insurance Observatory 2020
Global think talk focused on the usage of IoT data in the insurance sector, both in Europe and North America
Connected and Sustainable Insurance
Connected insurance represents a new paradigm
for the insurance business that allows a new virtuous role for society
2020 IoT Insurance Onservatory
Global Insurance think tank focused on IoT usage in the insurance sector
IoT insurance lessons learned
IoT insurance best practices and pitfalls what have been learned working with more than 110 players in 15 different countries
IoT Ins Obs '19
The Global insurance think-tank which has put together more than 50 insurance groups and tech players
Smart Home Insurance
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of โmust-haveโ elements for an insurer in order to deliver the promise of a smart home value proposition.
IoT Insurance Observatory 2019
The think tank membership provides access to the most globally relevant IoT insurance knowledge
#IoTinsObs
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The think tank membership provides access to The most globally relevant insurance IoT knowledge
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Let's demystify the IoT insurance fake news.
Lesson learned through the work with more than 100 insurers, reinsurers and tech players in 15 different countries.
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The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 50 prestigious organizations โ Insurers, Reinsurers and Tech players โ have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
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