As a follow up to my article on 12 Strategic & Tactical Questions to Prepare for Insurance in the Future I think it would be good to discuss the questions one at a time to look a little more deeply at the impact on your insurance business. We mentioned that by 2020 there will 50 billion devices connected to the Internet worldwide, also known as the Internet of Things (IoT). Let’s take this in the context of US insurance business. The number of Internet-connected cars topped 1 million in 2015 and based on worldwide growth rates is expected to grow on average of 16% through 2020. Benefits here that insurers would be interested in include crash prevention as cars communicate with each other, alerting drivers to roadway hazards, and updating drivers of dangerous situations via online advisories.
Another important area to consider Is the number of Internet-connected homes known as smart homes. It is expected that the number of connected home device shipments will grow at a compound annual rate of 67% over the next 5 years, which is much faster growth than smart phones and tablets. Consider all the information you can collect with Internet-connected sensors to thermostats, alarm systems, appliances, etc. For each line of business you cover, what data can be accessed via Internet connectivity?
And don’t forget how you use the Internet with mobile devices and apps at your disposal to take advantage of the generational shift to mobile phones and tablets. The latest statistic is that on a worldwide basis mobile devices are viewed more than television; how does this change your go to market strategy? As you can see there are lots of things being connected to the Internet. What does this mean for your business?
In my next post we will discuss where you put all this growing data. Thank you for reading this article and if you have any questions, please enter them in the Comments section below.