The INSURTECH Book

“INSoT” – The Insurance of Things and the Proliferation of Protection

By Nick Bilodeau

Head of Marketing, Insurance, Canada, American Express

The insurance industry is about to get a lot more interesting. Much has been written in recent years about the increasing integration of the Internet, technology, and data into all parts of life and everyday objects.^1,2,3 And beyond the literature, looking at what’s already in the market, it’s quickly becoming apparent that this will profoundly change the way we live. From FitBit activity trackers and Nest learning thermostats, to even smart fridges that provide real-time grocery lists and smart mirrors that offer customized skincare routines, we’re already beginning to get an early glimpse of what’s to come.

So, what does this all have to do with insurance? Over time, this growing digital interconnection – commonly referred to as the Internet of Things (IoT) – will have a knock-on effect, enabling a wide range of value-adding benefits and services across many industries as it continues to evolve. Insurance will ultimately be a part of these benefiting industries and will increasingly become more broadly integrated into our day-to-day lives – in what could by extension be referred to as the “Insurance” of Things (or INSoT).

An INSoT world will bring about the next generation of protection. It will be a world in which sensors, real-time big data, and advanced analytics blend with policy-holder profiles to produce a more profound and holistic ...