The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured.
In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young’s Financial Service practice, to discuss how the IoT has the potential to shrink the distance between the insurer and insured by providing increased knowledge of the behavior of customers, prospects and distributors in the context of their surrounding environment. Usage Based Insurance (UBI) within auto insurance has been an early testing ground. Streaming vehicle data has enabled participating insurers to improve their understanding of driving behaviors and to adapt the pricing and management of these risks. Given the promise of the early findings, auto insurers are increasingly offering sensors that monitor individual driver behavior while asking consumers to trade privacy regarding their driving behaviors and locations for lower prices.