How the rise of the Internet of Things is changing insurance

The Hartford's IoT Innovation Lab has a clear objective: to use connected devices and the data collected from them to mitigate insurance claims.

Dan Campany, vice president of innovation and head of IoT, puts it simply: "Things that are preventable and predictable, let's try to address them, and prevent and predict them, so that they don't happen in the first place."

In an interview with Digital Insurance, Campany discussed the mission of the lab, the types of IoT devices that are most effective, the potential impact of the lab's work on policies and more. 

Read more: The Hartford's IoT executive talks tech use for prediction, prevention

The emergence of vast networks of connected devices collecting and sharing data via the Internet of Things has transformed information into the preeminent currency in a digital world that has given new meaning to the phrase "a wealth of data".  

Insurers are inundated with data, but therein lies the challenge: how do you harness the power of so much data without drowning in it?

Karen Clarke, Managing Director, Americas of Anaplan, has a clear strategy. "Getting the most out of the data available today requires true digital transformation – a mix of digital tools, systems, and processes, combined with the right resources to manage all three."

Read more: How insurers can harness the power of data

The combination of the latest smart home technology and the rapidly expanding IoT is transforming the insurance industry, as insurers join forces with home security tech monitoring firms to offer discounts to policyholders for losses sustained due to theft, burglary, floods and even hurricanes.

But the possibilities go beyond mere policy discounts for installing home security tech. Insurers and smart home tech firms are now looking into the potential for loss mitigation, for example with new technology that can identify flooding and turn off water valves as a result.

Several partnerships are already exploring the opportunities, including State Farm with Ting, Nationwide with Notion and Deep Sentinel, and Hippo with SimpliSafe, Ring, Notion and Lennar 

Read more: Smart home tech: Greater potential than just policy discounts?