SAG_Twitter_MEME_Brush_Your_teeth_Jan17.jpgBrushing your teeth with a toothbrush that sends data to your dentist might sound a little farfetched.

But what if using an Internet of Things (IoT) smart device such as a toothbrush means that your dental insurance premiums go down?

Many major consumer electronics companies and even some startups offer an intelligent toothbrush. Healthy brushing behavior can help you and your family members to brush better, leading to a lower degree of cavities. Insurance companies will embrace this kind of technology to lower your insurance premium if you share your data and show that you follow up on health-related advice.

Insurance is a prime example where more and more companies feel confident enough to explore new business models: pay-per-use, pay-per-insight and pay-for-features will be gaining mindshare.

If I had told you three years ago that insurance companies would become the biggest embracers of the IoT, would you have believed me?

And if I told you now? Probably. Although insurance companies will not develop IoT devices, they are the first to really exploit the business models that are incumbent.

I already wrote in previous blogs how manufacturers use IoT to gain precise insight on usage of equipment, which allows them to adopt pay-per-use models - radically changing the way this industry thinks. 

But how will process-oriented companies like insurance companies and banks benefit? Well by now it is clear that they will adapt their models to the insights gained on the advice given by the IOT systems.

The examples are starting to pile up showing that this is going to be a huge area, and the first careful initial steps are being taken. For example, in Asia Software AG customer AIA is rolling out a vitality program, where if you share your details on your healthy living (like sharing your fitbit data) you will get reward points in their member program.

Also, in car insurance this is moving fast. Octo Telematics is already delivering data from millions of cars to insurers for analysis of driving behavior, which will influence insurance premium more and more.

One of the first insurers that recently actively started to promote this insurance to consumers is ANWB, offering up to a 30% premium discount if you share your driving data through a dongle. Startups like flo and Whoosz started exploring this kind of model in 2015.

Right now this is an opt-in, but if this type of insurance becomes more mainstream it is just a question of time before it becomes the de-facto standard. Eventually you may have to pay an additional fee if you don’t want to be tracked and measured on your driving behavior.

Combine this with the introduction of blockchain which will lower the barrier of introducing new insurance concepts and you understand that insurance companies have to buckle up and check their seatbelts, because they are up for the ride of their lifetime.

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