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Connected devices took the insurance industry by storm in 2018. From wearable devices in health and life insurance to smart speakers making it easier for insurers to connect with consumers, the IoT market is only expected to grow in 2019, according to Insurance Technologies Corporation’s CEO, Laird Rixford.
Up and down the gamut, whether it’s a connected thermostat or smart watch, IoT devices provide telematics data on how a consumer behaves – valuable intel for insurers. While a few insurers have already tapped into this market, more are likely to take advantage of this readily available data.
“We will see a continued trend of connected devices,” says Rixford. “From data analytics and tracking to having better communication through marketing and creating curated marketing experiences that are based on actual actions of the insured, such as how they drive and how much they work out – that will drive home how connected devices will become an integral part of understanding how consumers live their lives and how insurance works with that.”
As more and more data flows into the industry, be it from rating tools, agency management systems or connected devices, the industry will better understand how consumers live, thus better insuring their needs. And with more connected devices entering the homes and lives of the insured – for example, eMarketer estimates smart speaker usage will rise 15% in 2019 – insureds will also have more reason to protect the possessions they hold dear, creating a wealth of opportunity for brokers.
“Now you can get add-on policies and warranties on pretty much everything you buy, and that’s just another form of insurance, so consumers are always looking for ways to make sure they protect their valuables,” he explains. “The insurance industry is understanding that through data analytics and connected devices, it will create a better ecosystem for clients as well as agencies and carriers alike.”
