IoT in Insurance: Moving Beyond Potential to Mass Deployment

The Internet of Things (IoT) has long been heralded for its potential in various sectors, including insurance. However, a recent webinar featuring John Riggs, CTO at Hartford Steam Boiler, and Matteo Carbone, founder of the IoT Insurance Observatory, suggests a pivotal shift in perspective—from potential to mass deployment. The discussion, part of the "Future of Risk" series, emphasized not just the high-return IoT projects but also the multitude of lesser-known, yet highly promising opportunities.

Riggs outlined Hartford Steam Boiler’s journey, tracing back to 1865 when boiler explosions were rampant in the U.S. Today, their focus on IoT is aimed at maintaining operational efficiency and preventing losses rather than merely compensating for them. Their IoT initiatives have saved clients hundreds of millions of dollars, highlighting the practical benefits of this technology in mitigating risks.

Carbone expanded the discussion to various applications of IoT in insurance, from real-time risk mitigation in commercial properties to its use in medical malpractice and commercial auto sectors. He stressed that IoT should not be seen merely as a product but as a key capability across a range of products and services. The potential ROI, as high as 639% in some cases, signifies not just successful implementation but also the neglect of smaller yet significant opportunities in IoT deployment.

The webinar urged insurers to expand their IoT integration beyond niche areas, aiming for broader penetration across their portfolios. This approach represents a significant shift in the insurance industry, moving from conceptualizing IoT as a future possibility to recognizing it as an immediate, actionable strategy. The discussion concluded with a look at future expansions in the "Future of Risk" series, promising more insights into this evolving field.