Letting light into the Black Box
The IoT has the potential to become the key asset for insurance companies. Those who can feed their risk-management systems with real-time data will be able to carry out more accurate calculations and thus optimise their pricing. In addition, there is enormous scope for services that have the potential to permanently change the role of the insurer – moving away from being a pure claims adjuster, towards becoming an all-embracing risk manager.
Insurers are advised not to plunge into their IoT projects without any structure. A central point is that they first identify the benefits for their own business model. The issue of data security must also be considered from the outset as part of a security-by-design approach. Finally, issues of organisation also need to be clarified: how do I build the system, how do I integrate it and how do I manage my partners? Anyone who addresses these questions will, with the help of the right partners, quickly find light in the darkness of the supposed black box.