How the insurance industry is integrating IoT

To derive the most business value out of your IoT ventures, take a page from the insurance industry's book.

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IoT is making waves in many sectors, especially within the insurance industry. The amount of information available is increasing at a considerable rate and it only makes sense that insurers find ways to exploit the emerging technologies.

The field is changing the dynamic between customers and businesses in the insurance industry which is already exploiting IoT sensors to create usage and behavior-based insurance plans. Emergent technology is even allowing smartphones applications to detect and report on the telematics of driver behavior. The applications measure acceleration, braking, cornering and even phone usage while driving and utilize these metrics to either rebate or charge to the policy. These metrics are compelling drivers to drive better and consequently minimize accidents \,which benefit both the client and the insurer.

This is just one example of the multitude of opportunities IoT provides for businesses. Connected cars and homes are providing a framework for businesses to capitalize on and leverage IoT within their companies. Using the insurance industry again as a case in point, connected smoke detectors or water sensors can save both the insurer and the customer in the long run and thus discounted premiums are offered if these indicators are in place.

CIOs can implement IoT and make it a reality adding tangible value to the business model. However, this must be done incrementally and business infrastructure and human resources need to be in place to support and effect the necessary changes to the way the business will function.

The rise of IoT and data is changing business relationships

The evolution of IoT and more wide scale adoption thereof, is promoting a type of partnership between businesses and customers, instead of the traditional business relationship. Employing and leveraging IoT that supports mutual benefits for both the customer and the organisation results in a meaningful and constructive association.

Furthermore, IoT is growing the value of IT within organisations. It is no longer an issue relegated to the basement of the building that no one thinks about until the server crashes, but a usable, serviceable technology that everyone can use effectively, enabling business to further their endeavours. With increasingly complicated devices from a mounting plethora of vendors, businesses need to choose wisely with the business outputs in mind.

All this data generated from sensors in both vehicles and the home represent opportunities to extend their value to the business domain. Allowing IT to preside over and utilize the cornucopia of available information to illuminate trends and make business-centric decisions.

In order to effectively use this data pool and really use IoT to the best advantage, chief information officers need to have a strategic vision, incorporating a step-wise adoption plan.

How CIOs can accelerate the use of IoT to fast forward business value

CIOs need to focus on step-by-step implementation processes. A long term vision is important but in experience, attempting to implement everything at once generally causes the project to fall short of the goal posts. It is essential that the basic building blocks of an IoT driven ecosystem are in place. For instance, analytical power, big data access and talent to administrate the system are vital elements.

Breaking down the project into achievable goals is critical to success. Not only does it keep stakeholders motivated, but it is easier to control from a project management perspective. From the outset, communication is important. It’s crucial to initially research and understand the technologies that the business is intent on deploying to ensure the correct platform to meet the organisational needs.

Stakeholder buy-in from the top down is significant to achieve IoT implementation goals. As with any emerging technology, there are likely to be teething problems but if there is wholesale cooperation from all sectors of the business it is likely that they will be overcome successful.

IoT is dramatically impacting on all spheres of industry, and it is hence important to get in on the ground floor and effectively leverage the technology. The transformation in terms of consumer engagement and IT responsibilities is imminent and CIOs must manage the integration to ensure its success and that embracing IoT adds business value effectively.

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