Insurers have already become familiar with smart devices in cars and have used telematics capabilities to create more accurate risk profiles leading to personalised policies that reflect actual car usage and how the car has been driven.
This telematics risk profiling approach will only increase - in the USA, after Sept 1st 2014, event data recorders will be mandatory in all new vehicles, with most Western societies implementing similar legislation.
And now, smart devices are set to penetrate the home market. These are making inroads through popular consumer solutions. As smart home technology evolves, insurers may have the opportunity to use realtime telemetric data for the assessment of risk and prevention of loss.
This whitepaper studies the latest technological developments and the implications for insurers in terms of underwriting, pricing and risk management.