Awareness of internet of things (IoT) technology remains somewhat nascent among small and medium enterprises and insurance brokers, with 51% and 39%, respectively, saying they are only somewhat familiar with the concept. Yet in its 2019 Future of Insurance survey, Argo Group found both businesses and brokers strongly believe the technology will have a major impact on the insurance industry over the next five years. Indeed, 57% of brokers think “IoT solutions” can reduce a company’s cost of risk, and 64% of small and medium enterprise clients think IoT will “significantly disrupt the insurance industry within the next five years.”
According to Rooney Gleason, the firm’s president of U.S. grocery and retail, “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.” While applications of the technology promise convenience and efficiency for enterprises, 91% of brokers also see IoT as the top technology threat for the next year.