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Realizing the promise of IoT opportunities described in the accompanying article, “IoT 101: What Insurance Carriers Should Know,” doesn’t come without implementation challenges.

Here is a checklist of challenges that insurers should be prepared to manage as they consider rolling out risk-based and value-added service products.

  • Lack of security of the data that the IoT object generates, stores, consumes or accesses.
  • Loss of privacy due to hackers accessing and stealing or destroying data that the IoT object generates, stores, consumes or accesses.
  • Lack of agreement regarding data ownership that concerns the data the IoT object generates, stores, consumes or accesses.
  • Lack of agreement regarding what the data standards should be for the data the IoT object generates, stores, consumes or accesses.
  • Inability to integrate and achieve interoperability between and among IoT objects and the respective IoT ecosystems in which they operate.
  • Data holes caused by customers of various IoT objects deciding not to opt in to sharing all or part of the data that IoT objects generate, store, consume or access.
  • The instance when the IoT object or any of the ecosystems it participates in does not function correctly or at all.

Related article: IoT 101: What Insurance Carriers Should Know

Content influenced by and excerpted from Barry Rabkin’s book titled “From Stone Tablets to Satellites: The Continual Intimate but Awkward Relationship Between the Insurance Industry and Technology” published on June 28, 2022, by Wells Media Group.