Annual Survey Results
The internet of things is unlocking tremendous opportunities for business and consumers, but brokers and SMEs are cautiously optimistic.
Smart home products from thermostats to lightbulbs are bringing the internet of things (IoT) to life for consumers. Meanwhile, increasingly sophisticated sensors and automated equipment are reshaping businesses in every industry – including ours. In fact, approximately two-thirds (64%) of SMEs and brokers think the IoT will significantly disrupt the insurance sector over the next five years. This sentiment is felt more strongly among U.S. brokers (73%) than their U.K. peers (60%). There’s no question that the IoT can offer convenience to consumers and efficiency gains to the commercial side. The challenge will continue to be how to manage the risk of compromised or stolen data.
Survey Key Findings
Familiarity Still Growing
Fifty-one percent of SMEs and 39% of brokers say they are only somewhat familiar with IoT concepts.
A greater proportion of SMEs than in 2018 think the IoT will significantly disrupt the insurance industry within the next five years (64% vs. 58% in 2018).
Brokers See Upside …
Fifty-seven percent of brokers agree IoT solutions can reduce a company’s cost of risk.
… Yet Are Wary of Risks
Ninety-one percent of brokers see IoT as the dominant technology threat over the next 12 months.
“IoT data enables insurers to flip the conversation with clients, so it’s less about policy details and more about how they can better manage risk. Having access to objective, real-time metrics helps insurers make the case to clients that minimizing business interruption and risk can have a big impact on the business.”Rooney Gleason, President of U.S. Grocery and Retail, Argo Group
More SMEs in 2019 strongly agree IoT will disrupt insurance
I believe the internet of things will disrupt insurance in a significant manner in the next five years.
Brokers in U.S. and U.K. see IoT as a tool for reducing cost of risk
Do you agree that IoT solutions can rapidly and permanently reduce a company’s current cost of risk?