IoT in home: Opportunities for insurers

Study

June 2018

Internet of Things used to revolve mainly around Motor insurance; however, we see that IoT in home & health is picking up pace in various markets, including in Europe.

Our previous study performed in 2014-2015 showed that few insurers at the time were developing IoT in Home and Health and that most initiatives around IoT focus on Motor insurance.

In just a few years, this picture has changed significantly with numerous insurers developing their offers in Home and Health insurance with mixed results. Various strategies have emerged and fundamental strategic questions arise around cost-to-serve, monetization of additional services to clients and key success factors regarding ecosystem/partnership approaches. Moreover, the Home & Health insurance markets are confronted to several structural changes related to regulation, new competitors and data protection that could possibly transform the game in years to come.

The study will be based on the insights from two Steering Committees sessions, jointly organized by Efma and Roland Berger. During the sessions, we will try to find the answers on the following questions:

•    What is the current status of IoT in home & health domains
•    What are IoT major threats / risks and opportunities / benefits for insurers?
•    To what extent will IoT transform Home and Health insurance ? What are the main expected developments in the next 3-5 years?
•    What will be successful business models in the future ? and what capabilities will be required and how should insurers prepare to benefit from IoT?

Keywords : Business strategy/Model , Home insurance , Internet of things