The study claimed that the emergence of the IoT - linking people, objects, processes, data and the built environment - will create a flood of data and connectedness that will transform business models. The study claimed that by 2020 there will be 50 billion connected devices in use globally which compares to a projected world population figure of just 7.6 billion.
As a result of this level of data generation, the report claimed insurers will develop new propositions which will seek to become more proactive and preventative focused, rather than being reactive and remedy based.
“This proliferation of information could be of enormous benefit to insurers in managing risk, claims and market opportunities,” the report said. “Cisco suggests the opportunities arising out of the IoT could amount to $14.4 trillion of Value at Stake for companies and industries over the next 10 years.”
It added: “On the other hand managing this vast volume of new information in a timely, secure and compliant manner could become a nightmare.”
The study said, however, that new technology was providing solutions capable of managing the opportunities being created. “The emergence and proliferation of various technologies presents insurers with a wealth of options to reshape their business models and add value to their services.”