How the IoT can play a role in risk mitigation and not just be a security issue – Workers Comp Forum | Region & Cash

A wealth of data has been collected via IoT sensors since the beginning of the pandemic.

In a fascinating trending session at RIMS 2022, Chubb executives shared the stage with executives from Waymo and Prologis to talk about the Internet of Things (IoT) and its power to disrupt traditional risk management.

IoT as an insurance tool

As a technology, the IoT is growing rapidly.

Use cases abound, from cloud computing to connected technologies and digital data.

IoT technology – the embedding of digital sensors in physical objects – complements risk management and risk mitigation services, making them a key investment for insurers. Insurance companies need to be able to predict risk as accurately as possible, and IoT sensors are breaking the mold in this regard.

During the pandemic, IoT sensors took off and grew in popularity.

As the pandemic brought many businesses to a halt, IoT sensors became the eyes and ears to monitor the newly vacant buildings. If one of the building’s systems went down, the IoT sensor would detect it and notify someone. And the sensors are continuously tracking and recording data, and data is key for insurance companies.

The RIMS experts intervene

Tilia Gode, Head of Risk & Insurance, Waymo, Google, LLC, moderated the well-attended session.

Gode ​​joined Waymo from AIG’s Client Risk Solutions, where she was Global Head of Analytics.

Waymo is a technology company that launched the first autonomous driving service in Phoenix, Arizona and now in San Francisco.

Sean Ringsted, Chief Risk Officer and Chief Digital Business Officer, and Hemant Sarma, Senior Vice President, IoT Lead, both from Chubb, discussed how IoT is helping the business take risk management and mitigation to the next level by predicting potential harm and be prevented before it happens.

Ringsted said: “IoT technology is having a particularly big impact on the commercial insurance industry – it is evolving the way commercial insurance is priced, underwritten and serviced; and its adoption in this segment has accelerated significantly since the pandemic.”

Sarma commented, “At Chubb, we see IoT as a great opportunity to offer our customers new tailored risk prevention services to ultimately reduce or even avoid losses. It helps to digitize our underwriting practice and improve our client retention by providing our clients with innovative and market-leading solutions.”

Jeffrey Bray, Senior Vice President, Global Risk Management, Prologis, Inc. spoke about the importance of IoT sensors in his business.

With a multi-billion dollar global warehouse real estate portfolio, finding better ways to manage and predict risk improves the bottom line.

And when risks are driven by physical risks, IoT technology is the perfect solution. IoT sensors help Prologis stay ahead of risk, collect more data, and be more predictive to mitigate risk.

Bray spoke of moving to a point of reacting to leading indicators rather than reacting to lagging indicators.

“Our journey went from a connected building to a data-driven building equipped with sensors and IoT and other components to collect data. And the point we all want to reach is autonomous building to gain insights and avoid and mitigate losses.”

The session explored several different IoT use cases, including indoor water detection, preventative maintenance, worker injuries, telematics, and asset tracking. And as technology expands, there will be more opportunities to benefit from IoT technology.

Drone inspections were an interesting use case mentioned in the session. After a natural disaster, drones can be used to collect data in the field for damage assessment.

Drones are also used in building inspections – they provide more data while ensuring greater security.

Any questions?

The risk managers and other professionals attending the session posed questions to the panel throughout the session on supply chain challenges, adoption issues and next steps for IoT.

The robust discussion generated engagement in the room.

And while the opportunities are plentiful and the future for IoT use cases seems bright, we are still in the early stages of development.

Some learnings and takeaways for transportation companies looking to leverage the IoT: Start small and scale fast; Create a service along with a device. contain cybersecurity and data protection provisions; and bundling risk management services with IoT data.

What’s next for the IoT

Ringsted spoke about the impact of the IoT and what’s next: “We’ve seen the impact of this technology time and time again through sensor deployments in numerous industry segments including healthcare, real estate, hospitality and education to name a few.

“Chubb has billions of dollars worth of insured properties protected by IoT-enabled sensors with thousands of devices installed on both commercial and residential properties, providing hundreds of millions of data points to our customers and insurers. We are actively collecting and analyzing IoT data based on our rich claims history and I am very optimistic about the future of the technology.”

Unlocking the full potential of the IoT will take time.

The ideal IoT ecosystem is one that integrates IoT technology while gaining trust by managing the inherent cyber and privacy risks while finding ways to extract meaningful insights from the data collected by the IoT sensors.

The opportunities and possibilities that our industry can gain by exploring this interface between the physical world and the digital world are endless.

And the implications for the future of insurance are incredibly exciting. &

Abi Potter Clough, MBA, CPCU, is a keynote speaker, author and business consultant specializing in leadership and strategy, personal branding, insurtech and international risk management. She has over 15 years of experience at a Fortune 500 company with expertise in P&C Claims Operational Leadership, Lean Management Consulting, Digital Communications and Insurtech. She chairs the CPCU Society’s International Insurance Interest Group and is involved in many international risk management projects. She has many awards in the insurance industry. Abi can be reached at [email protected]

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