The time is now for investing and implementing insurance IoT.

Between 2017 and 2021, P/C insurers experienced dramatic increases in non-cat loss severity for water damage (34 percent) and fire and lightning (52 percent) in commercial property environments, with business owners and homeowners books experiencing similar challenges. (Source: HSB analysis of Verisk ISO DataCube data) In addition, extreme weather patterns, such as arctic blasts and Winter Storm Elliott, have become more frequent than ever.

In response, more insurers realize they need to do something, and that something is meaningfully applying IoT to their business. IoT can help improve overall loss performance by offsetting cat-related losses with proactive management of losses caused by non-cat perils, including non-weather water.

Sensor programs attract new clients and retain customers profitably in a way that few other technologies can. Ultimately, IoT creates a strategic differentiator for the insurance product and brand.

Analogous to other technological shifts involving data, lagging behind creates long-term implications for profitability and competitive advantage.