Internet of things will challenge market, Verisk Risk Forum hears

The growing level of connectivity in the world as more and more devices join the internet of things will pose a challenge for the insurance industry, according to Wolfram Schultz, global practice group leader, liability heavy industries and manufacturing at Allianz Global Corporate & Specialty.

Schultz told delegates at the Verisk Risk Symposium in London that in 2018 an estimated 11.2 billion products, ranging from computers and phones through to electronic price tags, would be linked to the internet – and this number is constantly increasing.

According to Schultz, these developments are resulting in more interest in creating ‘smart cities’, where planning, governance, healthcare, education, infrastructure and transportation are increasingly linked up via technology, making more detailed planning important.

The motor industry was particularly singled out for comment, with the increase in cars that are guided by artificial intelligence (AI) cited as an important development. Schultz said that these cars could be used to prevent car accidents or at the very least reduce the number of accidents.

Although he pointed out that there are still a number of issues concerning AI cars, such as how they can connect securely and consistently with their guidance systems, as well as the limitations of any computers within cars at the moment, he added that they could also lead to the early detection of faults with the cars, as well as predictive maintenance, which could have an impact on motor insurance rates.

Finally Schultz stressed that data security was a major issue in the internet of things – with so much information out there it was inevitable that fraudsters would try to access it, making cyber crime an important issue for the industry.

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