From Risk Transfer to Risk Prevention - a new report from The Geneva Association is exploring the impact of IoT application in the insurance industry

27 May 2021 — Daniela GHETU
From Risk Transfer to Risk Prevention - a new report from The Geneva Association is exploring the impact of IoT application in the insurance industry
Authored by Isabelle Fluckiger and Matteo Carbone, a new report from The Geneva Association explores how IoT applications are driving the shift from traditional risk transfer to technology-enabled risk mitigation and prevention services in the insurance industry.

From Risk Transfer to Risk Prevention - How the Internet of Things is reshaping business models in insurance is a first-of-its-kind study of the paradigm shift in insurance to real-time risk prevention solutions, enabled by Internet of Things (IoT) technologies. The report, authored by Isabelle Fluckiger and Matteo Carbone, is based on interviews with over 60 insurers, technology companies, start-ups, global organizations and leading academics across all insurance business lines and geographies.

Offering major benefits to both insurance retail and business customers, IoT has the potential to mitigate risks and encourage less risky behavior. The report highlights early success stories in insurance that demonstrate IoT's huge potential to promote safer and healthier workplaces and lifestyles, drawing on more than 60 interviews with insurers and other stakeholders.

The report encourages all stakeholders - insurers, technology companies, regulators - to prioritize understanding insurance IoT and how it can be applied to insurance prevention services.

Isabelle Fluckiger, The Geneva Association's Director New Technologies & Data and the lead author of the report, said: "Data provide a critical path to more affordable insurance coverage and to 'insuring' previously uninsurable risks through prevention. IoT is a fundamental enabler of this and cannot be ignored by the insurance industry. Insurers should also focus on how to translate the use of IoT-based risk prevention into sustainable business models."

Matteo Carbone, Founder and Director of the IoT Insurance Observatory and co-author of the report, said: "The world is now hyperconnected. Insurance of the future will use data to enhance customer experiences, impact core insurance processes, create new knowledge and improve sustainability. There are already pioneers in this space, and their stories demonstrate the powerful and increasing role of IoT data in better risk prevention."

The forthcoming edition of the XPRIMM Insurance Report FY2020 will include an article signed by the two authors of the report, summarizing the main findings and recommendations of the report.

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