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Risks and Opportunities of the Internet of Things

Risks and Opportunities of the Internet of Things

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SUMMARY

This report recommends the insurance sector cooperate with key stakeholders in the Internet of Things (IoT) to improve risk management and innovation.

IoT—devices that connects to the Internet, collects data, and uses that data to operate—will change how humans, infrastructure, and technology interact. According to a report, by 2020 about 25 billion devices will be connected to the Internet. Other studies suggest this number will rise to 125 billion in 2030.

IoT will connect devices and collect data to provide tailored experiences, whether it is manufacturing, shipping, or driving. The Internet of Things (IoT) will connect cities, home appliances, and vehicles. Companies can adopt IoT for many benefits. IoT can improve risk management data collection, automation, and cooperation with other developing systems, such as AI and robotics. With these benefits and high-volume data aggregation come great risks. Cyber-attacks refer to a broad concept in insurance that needs to be specified to be effective in modeling risk and exposure. IoT are targets of cyber-attacks because of the multiple connections between IoT devices and the Internet. Due to the number of stakeholders involved in IoT development, assigning liability is complex. To help define risk policies, this report details IoT risk cases for insurers in four different sectors: i) marine, ii) smart homes, iii) water infrastructure, and iv) agriculture.

There are significant blind spots in IoT regulation and insurance. IoT relies on broad social value chains of data flow, services, and devices. As a result, there is an aggregated system risk, which is more probable and less predictable. The complex layers of liability in IoT demands that the insurance sector works with governments and industry leaders to conceptualize coverage and risk management. Cooperation with the emerging IoT sector helps insurers understand and interpret risk, promote new business models, and technological innovation.

OUTLINE

Executive summary

Introduction

Opportunities and risks

Impact of IoT 

Iot and the insurance sector

Conclusions

Appendix

References

DETAILS

Overview

Researchfinder Rating
5 out of 5 stars
Title
Risks and Opportunities of the Internet of Things
Region
Global
Published
Sept. 15, 2018
Publisher
Lloyd's
Author(s)
Dr Leonie Maria Tanczer, Dr Ine Steenmans, Dr Irina Brass, Dr Madeline Carr
Price
FREE
Language
ENGLISH

Content

Number of Pages
73
Number of Tables
0
Number of Exhibits
10
Topics
iot, networks, security
Tags
agriculture, cyber security, insurance, iot, lloyds, regulation, risk management, risk report, smart home
Author(s)
Dr Leonie Maria Tanczer, Dr Ine Steenmans, Dr Irina Brass, Dr Madeline Carr
Methodology
This report is based on insights from expert workshops, expert interviews, and public scientific research.
EVALUATION

This report helps insurance companies and the entire value chain prepare for the opportunities, risks, and innovations emerging in the Internet of Things (IoT) sector.

The document helps insurers and brokers by investigating the emerging risks of IoT in water infrastructure, agriculture, marine, and smart homes. This document answers critical concerns for the growth and cooperation between various IoT-assisted sectors and the insurance market.

Positives

  • Investigates risk management scenarios in IoT-assisted sectors
  • Design helps readers identify important industry insights
  • Wide-range of research

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