Future Of Insurance Essay

Bigger than the Industrial Revolution, This is how some analysts talk about the budding "Internet of Things" and the innovation that will come as a result. We will start to see a plethora of "dumb" objects become connected; sending signals to each other and alerts to our phones, and creating mounds of "little data" on all of us that will make marketers salivate.

Many of us take advantage of the internet in our daily lives now, in fact now there are more devices connected to the internet than the entire human population of our planet. Cisco believes that by 2020 the total things connected to the internet will surpass 50 billion. That doesn’t even include all the devices and things not connected; such as a cell phone without battery. A new form of internet systems is beginning to emerge, and in the coming years it will see huge breakthroughs throughout the 21st century. The internet of things will change many aspects of people’s lives.

The insurance industry, like many other industries, is facing extensive changes required by a convergence of commercial and technology forces driven by innovation. Interconnectivity amongst insurance technology and customers’ lives is quickly accumulating and the insurance companies’ voracious appetite for more information to make improved decisions and to account for risk accurately, while concurrently decreasing costs, never ends (How technology impacts the insurance sector,

Snell & Lee (2015) states that the IoT fuses “a worldwide network involving interconnected and

Internet of Things (IoT) are devices that can collect and share data with no human interactions. IoT are machines that connect to other machines. Examples of IoT’s are fitness trackers that report to a smart phone, smart vacuum cleaners that are self- propelled, and Apps for your smart phone that can adjust lighting, temperature or security features at your house when you are away.

Today 's world, increasingly connected, is introducing a wide range of commercial elements in everyday objects, from cars to our barbecue grills. However, the reality of whether we are ready to embrace the concept of IoT and enjoy it to its fullest - from a revenue perspective - is quite different.

The concept of marketing is quite logical and simple. Identify the specific wants and needs of a target market and satisfy those customers better than the competitors. Insurance companies are in a unique position when it comes to marketing. They have no tangible products to sell, but must instead rely on strong relationships with loyal customers and word of mouth to help them compete. Still, despite the challenges, the marketing strategies for insurance companies are really no different than for any other company, and require a strong focus on the basics of effective marketing.

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed sum of money to the insured 's beneficiary. With a large population and the untapped market area insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the country’s GDP. In spite of all this, the growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian population is without life and health insurance cover. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform.

IoT is quickly becoming the new reality all around the world. The creation of IoT devices are expected to triple in the next few years (Rossolillo 2016). The IoT appliances include everything from autonomous cars to smart tattoos. As the gadgets change the technology and platforms used disseminate the information will also change and become more refined through Narrowband IoT. The future of the internet of things is expected to bring significant improvement to individual lives, corporations, and the global gross domestic product (GDP).

In the next five years, increased interest rates and increased investment in new activities will promote the vehicle insurance industrial.

The Internet of Things is a complex, innovative system rooted in the idea of connectivity. Individual artifacts that transmit data and information amongst each other ensure a smooth and coherent experience based off their ability to communicate through internet connection, sharing the same network to create incomparable efficiency and convenience. The Internet of Things is constantly developing to work in new areas and scenarios, further securing its essentiality in the domain of the technological future

The Internet of Things is a vision of a global network that connects various physical world objects to the IT infrastructure. This vision has been inspired by the success made in emerging technologies such as Radio-Frequency IDentification (RFID), wireless sensor networks, and mobile communication. The realisation of such a global object network will allow seamless interaction and cooperation between the real and logical world.

“The Internet of Things(IoT) can be defined as physical objects that connect to the internet through embedded systems and sensors, interacting with it to generate meaningful results and convenience to the end-user community”.[1]

Insurance is one of the tools for risk management that aims at reducing the risk on the day-to-day life of individuals, organisation and society. At the same time, it should also be appreciated that insurance cannot be utilised as a risk free tool for all types of situations. Insurance provides risk management solutions to many situations that fall within the competence of human judgement and managerial skills.

With the click of a button or a tap on a screen, you can discover profound knowledge, it navigates you to where you need to go, or it even tells you miscellaneous things such as which place to go to get the best pumpkin spice latte. The Internet of things has significantly impacted everyday lives and continues to develop throughout generations. It refers to pertinent things such as the ever-growing networks of everyday physical objects, and other internet-enabled systems and devices which process and analyze large and fast-moving data set along each other. To sum it up, the internet of things is a fast growing network of materials where everything is synced and can collect as well as exchange data using sensors that are embedded in devices. Although individuals believe that the Internet of Things (IoT) consequently, will strip every one of privacy and security, the internet of things ought to be utilized in society as it positively transforms the way you live and relate to our environment to make it more productive and useful for us.