Commercial insurers have much to gain by leveraging the capabilities of connected devices/objects (IoT) as part of underwriting, risk management, and claim processing. The numbers don't lie: This is an industry poised to reach $7.1 trillion by 2020, which shows the potential growth in connected things.
Much of the work we do with the insurance industry involves technology and counsel around P&C and submarkets, and as a result, we have seen several use cases and benefits around sensor-based personal devices impacting consumer insurance—both life and P&C.
IoT is well suited for the commercial insurance landscape, given most enterprises have some form of intelligent objects already in use. Insurers have long hungered for more parameters and data points which could help in better evaluating the loss potential or claim evaluation.
Sensors can help provide insights around motion, acceleration, temperature, humidity, occupancy, temperature, and a myriad of other ways with varying levels of control, along with sense and respond features. Similarly, these could be static or also unmanned aerial vehicles (UAV) fitted with sensors.