Analyzing the Futuristic Use-Cases of IoT Insurance

The Internet of Things has proved to be the foundation stone of Industrial Revolution 4.0. It has reshaped almost every sector of the economy and has touched every aspect of human life. Be it manufacturing or tourism, the Internet of Things has introduced a paradigm shift in the way an industry works. The latest industry to have experienced this wave of upgradation is the insurance sector. If implemented appropriately, IoT has the potential to enhance the efficiency of the insurance sector significantly

How can the IoT insurance industry improve the efficiency of the global insurance sector?

The central idea of the Internet of Things technology is connectivity. Its goal is to build an ecosystem in which almost every device or equipment that is of significance is connected to each other. Thus, IoT technology aims to build a network of smart homes, smart automobiles, smart wearables, connected healthcare systems, etc. This aspect of connectivity makes the IoT insurance industry an interesting prospect.

For example, with the help of IoT, thermal sensors installed in a smart home can alert the residents immediately when a fire breaks out. If, unfortunately, some injuries are sustained in such an event, the connected healthcare system can get instant alerts. IoT in the insurance sector can play an important role in this network of connected ecosystems. The insurance companies, by harnessing the power of the Internet of Things technology, can get regular updates regarding the status of the resident and the house. Moreover, IoT can help in smart underwriting which ultimately improves policyholder interaction, reduces risk losses, and prepares an accurate client portfolio. Thus, integration of IoT in the insurance sector can improve the insurance sector comprehensively.

Growth opportunities in the IoT insurance market

The IoT insurance market is set to witness a CAGR of 36.4% during the 2023-2032 period. This growth in the IoT insurance industry is due to a combination of various factors. Firstly, growing adoption of IoT in various countries of the globe is anticipated to play a huge role in the expansion of the industry. Furthermore, the surge in demand for cloud platforms is expected to drive the market ahead. Also, the introduction of innovative technologies including machine learning and artificial intelligence in the insurance sector is predicted to augment the growth of the market.

The IoT insurance market is classified on the basis of various segments such as component, insurance type, and application. By insurance type, the life and health insurance sub-segment is anticipated to garner an absolute revenue growth of $388.0 billion in the 2023-2032 period. On the other hand, the property and casualty insurance and others segments are anticipated to collect $267.44 billion from 2022 to 2032 period. Regional analysis of the market has shown that the India IoT market is estimated to rise at a CAGR of 45.2% during the forecast period.

Strategic alliances among major companies have also strengthened the position of the market considerably in the past few years. For instance, Pepper IoT, in December 2022, announced the acquisition of Notion, an insurance company. Such acquisitions help not just the acquiring company but also the entire industry to expand its operations across the world. Along with such alliances, product launches have played an important role in widening the scope of the market. For example, Sky Protect Smart Home Insurance and Zurich Insurance, in May 2023, announced the launch of smart home IoT insurance services for holistic insurance coverage of smart homes.

To conclude, the global IoT insurance market is projected to propel ahead owing to the massive adoption of advanced technologies by various countries across the world. The tremendous growth of the industry in India and innovative product launches by key players will further impact the market positively.

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