{"id":86823,"date":"2018-08-10T05:19:22","date_gmt":"2018-08-09T23:49:22","guid":{"rendered":"http:\/\/www.vallamai.com\/?p=86823"},"modified":"2019-06-17T12:05:53","modified_gmt":"2019-06-17T06:35:53","slug":"social-impact-of-internet-of-things-iot-boon-or-ban","status":"publish","type":"post","link":"https:\/\/www.vallamai.com\/?p=86823","title":{"rendered":"SOCIAL IMPACT OF INTERNET OF THINGS( IoT)\u2013 BOON or BAN"},"content":{"rendered":"<p><strong>-K. HARINI<\/strong><\/p>\n<p><strong>Impact of IoT in Financial Services \u2013 Insurance Industry<\/strong><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/p>\n<p><strong>Introduction:<\/strong><\/p>\n<p style=\"text-align: justify\">Nearly Two billion people are connected\u00a0to\u00a0the internet.\u00a0 During the last twenty years, the technology revolution had an intense and irreversible impact on Human life.\u00a0 We all are aware of the internet.\u00a0 IoT is the advancement of the internet.\u00a0 IoT allows virtually endless connections and operations\u00a0to take place. \u201cAnything that can be connected, will be connected \u201cby IoT.\u00a0 The Primary objective of this research paper is to\u00a0analyze the impact of IoT in the insurance Industry which is a major part of financial services.\u00a0 The IoT made financial service available to more customers and eliminated geographical barriers.\u00a0 This paper also discusses the origin of IoT, IoT in different types of Insurance and the application of IoT in the insurance industry by foreign Nations.<\/p>\n<p><strong>What is IoT?<\/strong><\/p>\n<p style=\"text-align: justify\">IoT is the network\u00a0or system of an interrelated computing\u00a0device, sensors, living creatures or objects that have unique identifiers and\u00a0can communicate with another device on the internet.\u00a0 These objects or\u00a0\u201cthings \u201care\u00a0capable of transmitting data.\u00a0 In\u00a0other words, in IoT real, physical and\u00a0virtual world interact with each other.\u00a0 It is independent communication between objects that helps optimize operation, reduce cost, boost productivity and improve lives.<\/p>\n<p style=\"text-align: justify\">\u201c IoT \u201c started life as the title of a presentation made by\u00a0<strong>\u201cKevin Ashton\u201d<\/strong>, an American scientist at European Union conference held at \u00a0<strong>\u201cProctor &amp; Gamble\u00a0\u00a0 ( P &amp; G )\u201d\u00a0<\/strong>in 1999.\u00a0 According to Kevin Ashton, we need to empower computers with their own means of gathering information, so they can see, hear, smell the world for themselves, in all\u00a0its\u00a0random glory.\u00a0 If we\u00a0had computers that knew everything there was to know about things use data they gathered without any help from us.\u00a0 We would be able\u00a0to track and count everything and greatly reduce\u00a0waste, loss and cost.\u00a0 We would know\u00a0when things needed replacing, repairing or recalling and whether they were\u00a0fresh or\u00a0past their best.<\/p>\n<p><strong>Role of Iot in Insurance Industry:<\/strong><\/p>\n<p style=\"text-align: justify\">According to\u00a0<strong>Robert mehr<\/strong>,\u201d Insurance is a social device for reducing risk by combining a sufficient number of exposures to make their individual losses collectively predictable.\u00a0 The predictable loss\u00a0is\u00a0then shared proportionately by all those in the combination\u201d.<\/p>\n<p style=\"text-align: justify\">Insurance is a\u00a0 contract between two parties namely, the\u00a0<strong>Insured and the Insurer<\/strong>.\u00a0 Insured is the person who insures his life\u00a0or\u00a0property and insurer is the company which undertakes to compensate the loss incurred by the insured for a consideration called\u00a0<strong>premium<\/strong>.\u00a0 The contract of Insurance is also called a\u00a0<strong>contract of indemnity\u00a0<\/strong>except for life insurance, as the insured is only\u00a0compensated\u00a0and not allowed to\u00a0 earn\u00a0 any profit from the contract.<\/p>\n<p style=\"text-align: justify\">As the Internet of Things begins to deliver gains in productivity and savings on everything from appliances and automobiles to turbines and pipelines, new opportunities have emerged in the realm of finance. The networks of sensors and Big Data analytics that help prescribe more efficient maintenance schedules and predict potential system failures can also deliver new levels of transparency to those who provide loans and insurance to these industrial and infrastructure investments.<\/p>\n<p style=\"text-align: justify\">The \u00a0IoT plays an efficient role in house, life, vehicle, fire and marine insurance.<\/p>\n<ol>\n<li>A.\u00a0Wearable or personal technology<\/li>\n<li>Sensors on objects<\/li>\n<li>Location\u00a0Sensors<\/li>\n<li>Geographical information system (GIS)<strong>\u00a0<\/strong><\/li>\n<\/ol>\n<ol>\n<li><strong>A<\/strong>.\u00a0<strong>Wearable or personal technology:<\/strong><\/li>\n<\/ol>\n<p style=\"text-align: justify\">Sometimes monitoring heart rate, steps walked and other health-related metrics. This technology is rapidly developing, with prototype patches already performing blood work and ECGs and automatically administering drug doses.<\/p>\n<p style=\"text-align: justify\"><strong>2. Sensors on objects:<\/strong><\/p>\n<p style=\"text-align: justify\">It<strong>\u00a0<\/strong>includes personal and commercial vehicles and shipping containers, that measure distances traveled, speeds and frequency and level of braking.<\/p>\n<p style=\"text-align: justify\"><strong>3. Location\u00a0Sensors:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Such as those in\u00a0 sensors, including \u201csmart thermostats,\u201d security technologies, such as alarms and cameras, and industrial control systems.<\/p>\n<p style=\"text-align: justify\"><strong>4. Geographical information system (GIS):<\/strong><\/p>\n<p style=\"text-align: justify\">As well and that may include drone and satellite imagery While this data is directly accessible by or streams to insurers via sensors or mobile devices, third-party organizations may also play a role in owning, aggregating, and distributing to insurers. All of these data types are potentially useful for the full range of products and lines of business, from commercial (which was an early adopter and has been an advanced user of such data for many years), to life, property and casualty and health.<\/p>\n<p><strong>IoT in Life Insurance:<\/strong><\/p>\n<p style=\"text-align: justify\">Sensory devices such as wearables, nearables and Hearables have unique advantages, each with an aim of simplifying the human lifestyle.<\/p>\n<ol>\n<li style=\"text-align: justify\"><strong>Wearables:<\/strong><strong>\u00a0 <\/strong><\/li>\n<\/ol>\n<ul>\n<li>Using body sensors for health monitoring to stay fit and guard against any health hazards.<\/li>\n<li>Remotely manage equipment such as machinery on an assembly line, making the work place safer for employees.<\/li>\n<li>Hands free access to data via smart glasses\u00a0or a smart watch.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong> Nearables:<\/strong><strong>\u00a0<\/strong><\/li>\n<\/ol>\n<ul>\n<li>When entering a movie\u00a0theatre for eg: beacons\u00a0could be automatically silencing\u00a0your\u00a0phone.<\/li>\n<li>Nearables deployed\u00a0on a\u00a0laptop\u00a0send information regarding Laptop\u00a0sense\u00a0information laptop excess\u00a0heating to smart phones.<\/li>\n<li>Will remind\u00a0the user\u00a0through smartphone\u00a0if he\u00a0forgets the\u00a0laptop at\u00a0any place.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> Hearables:<\/strong><strong>\u00a0<\/strong><\/li>\n<\/ol>\n<ul>\n<li>It reelects light off to blood vessels near\u00a0the\u00a0skins surface to track heart rate, temperature, speed and distance\u00a0while allowing the\u00a0user to enjoy music simultaneously.<\/li>\n<li>A user\u2019s fitness data, including calories burned, can be sent to a smart phone through Bluetooth.<\/li>\n<\/ul>\n<p><strong>Iot in House Insurance (Smart Homes):<\/strong><\/p>\n<p style=\"text-align: justify\">What do you get if you combine the Internet of Things with the business of home insurance? U.K. startup\u00a0Neos\u00a0is hoping the answer is prevention rather than (just) payouts.<\/p>\n<p style=\"text-align: justify\">Its home insurance product is intended to lean on sensor tech and wireless connectivity to reduce home-related risks \u2014 like fire and water damage, break-ins and burglary \u2014 by having customers install a range of largely third-party internet-connected sensors inside their home, included in the price of the insurance product. So, it\u2019s a smart home via the insured backdoor, as it were.<\/p>\n<p style=\"text-align: justify\">Customers also get an app\u00a0to manage the various sensors so they can monitor and even control some of the connected components, which can include motion sensors, cameras and smoke detectors.<\/p>\n<p style=\"text-align: justify\">The\u00a0<u><a href=\"https:\/\/www.crunchbase.com\/organization\/neos-3\/\">Neos<strong>\u00a0<\/strong><\/a><\/u>\u00a0app is also designed to alert users to potentially problematic events \u2014 like the front door being left open or water starting to leak under their kitchen sink \u2014 the associated risk of which a little timely intervention might well mitigate.<\/p>\n<p style=\"text-align: justify\">It sees additional revenue opportunity there too \u2014 and is aiming to connect customers with repair services via its platform. So, the service could\u00a0help a customer who\u2019s away on holiday arrange for a plumber to come in and fix their leaky sink, for example (there are no smart locks currently involved in the equation, though \u2014 Neos customer can name trusted keyholders to be contacted in their absence).<\/p>\n<p style=\"text-align: justify\">\u201cThe vision really is about moving insurance from a traditional claim, payout type solution\u2026 to one that\u2019s much more preventative, and technology\u2019s really the enabler for that,\u201d says\u00a0co-founder Matt Poll. \u201cWe also think that customers get quite a raw deal from their insurance company\u2026 for being a really good customer and not claiming\u2026 And no value.<\/p>\n<p style=\"text-align: justify\">\u201cSo, what we\u2019re trying to do is to provide value to customers throughout the term of their policy \u2014 allowing them to monitor their own homes, using our cameras and the devices that we give them. If there is an issue, they\u2019ll get alerted. Most importantly they or us through our monitoring center and assistance service can put the things right\u2026 In that sense, both the customer and us benefit if we\u2019re successful.\u201d<\/p>\n<p style=\"text-align: justify\">On the insurance cover front, Poll claims there\u2019s no new responsibilities being placed on customers\u2019 shoulders \u2014 despite all the sensor kit that\u2019s installed as part of the package. \u201cThere\u2019s no responsibility placed on the customer. We\u2019re really clear about that,\u201d he tells TechCrunch. \u201cCustomers do ask this question \u2014 oh what if I don\u2019t arm the alarm, does that mean I\u2019m not covered? And our answer is simply of course you\u2019re covered.\u201d<\/p>\n<p style=\"text-align: justify\">The startup was founded 18 months ago by Poll, an ex-insurance guy, combining with a more technical co-founder. The team market tested their proposition last year in and around London, partnering with Hiscox on the insurance product offering for that trial. They\u2019re now launching their own branded insurance offering nationwide.<\/p>\n<p style=\"text-align: justify\">Neos is actually offering a range of home insurance products, including a combined content plus buildings insurance offering (or either\/or) across three pricing tiers \u2014 aiming to support different levels of coverage and different types of customers, such as flat versus house dwellers, for example, or homeowners versus tenants.<\/p>\n<p style=\"text-align: justify\">While it\u2019s generally aiming to be tech agnostic when it comes to which smart home sensors can be used \u2014 supporting a range of third-party devices \u2014 Neos has developed its own smart water valve, for example, as Poll says it couldn\u2019t find an appropriate existing bit of IoT kit in the market for that.<\/p>\n<p style=\"text-align: justify\">\u201cIt uses machine learning to monitor an individual\u2019s water signature within their property over a period of a couple of weeks and then we can identify from that if there\u2019s any leaks \u2014 small or large.<\/p>\n<p><strong>Impact of Iot in Insurance Industry:<\/strong><\/p>\n<p style=\"text-align: justify\">The IoT\u2019s impact within insurance is coming fully into focus. At the highest level, better use of IoT and sensor data means insurers have the opportunity to:<\/p>\n<ul>\n<li>Establish direct, unmediated customer relationships<\/li>\n<\/ul>\n<ul>\n<li>Gain more granular and precise understanding of who their customers are and how their needs\u00a0\u00a0\u00a0 change over time<\/li>\n<\/ul>\n<ul>\n<li>Individualize offerings of products, features and access options For insurers that have relied on agents and brokers,<\/li>\n<\/ul>\n<p style=\"text-align: justify\">customer data represents enormous change. Historically, much customer data was unavailable, and the information insurers could access was often subjective or inaccurate. Consider the common misrepresentation of data around certain behaviors driven per week) on insurance applications. The IoT opening up new possibilities in many functions. Coupled with advanced analytics capabilities, new data streams and sources have set the foundation for entirely new business models. Usage-based insurance (UBI) \u2014 so-called \u201cpay-as-you-live\u201d or \u201cpay-as-you-drive\u201d business models \u2014 have quickly moved out of pilot phases and proved their viability and value around the world. In fact, there are an estimated 5 million active UBI policies in 35 different countries. From this relatively low base,<\/p>\n<p>EY estimates that UBI policies will reach 15% market penetration by 2020 in Europe, Asia and the Americas.<strong>\u00a0<\/strong><\/p>\n<p><strong>Conclusion:<\/strong><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">IoT made close relationship between insurer and customer.\u00a0 This helps the insurer to understand their customers well and in an expansion\u00a0of the business.\u00a0 Through the service rendered by the insurance company, customers able to lead\u00a0a safe and comfortable life.\u00a0 Thus, IoT creates a positive impact on both the customer and insurer\u2019s life.<\/p>\n<p><strong>REFERENCES:<\/strong><\/p>\n<ol>\n<li>RFID journal<\/li>\n<li>IoT \u2013 enabled Banking services \u2013 INFOSYS<\/li>\n<li style=\"text-align: justify\">Wearable Devices and their Applicability in the Life Insurance Industry\u00a0&#8211;\u00a0 CAPGEMINI Consulting.<\/li>\n<\/ol>\n<ol start=\"4\">\n<li>The Internet of Things in insurance \u2013 EYGM Ltd., Article.<\/li>\n<li>Financing the internet of Things: An early Glimpse of the potential\u00a0&#8211; HARVARD,\u00a0 \u00a0Kennedy School.<\/li>\n<\/ol>\n<ol start=\"6\">\n<li>Financial Services (Indian Financial system) \u2013 Mr. Santhanam \u2013 Margham\u00a0 Publications, 24, Rameswaram Road, T. Nagar, Chennai-17.<\/li>\n<\/ol>\n<p>*****<\/p>\n<p>The writer is an II \u2013 B.Com., student\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Theivanai Ammal College for Women.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>-K. HARINI Impact of IoT in Financial Services \u2013 Insurance Industry\u00a0 \u00a0 \u00a0 \u00a0 \u00a0&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[707,2806],"tags":[2338],"class_list":["post-86823","post","type-post","status-publish","format-standard","hentry","category-english","category-research-articles-english","tag-k-harini"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","covernews-featured":"","covernews-medium":""},"author_info":{"display_name":"admin","author_link":"https:\/\/www.vallamai.com\/?author=1"},"category_info":"<a href=\"https:\/\/www.vallamai.com\/?cat=707\" rel=\"category\">English<\/a> <a href=\"https:\/\/www.vallamai.com\/?cat=2806\" rel=\"category\">Research Articles<\/a>","tag_info":"Research Articles","comment_count":"0","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.vallamai.com\/index.php?rest_route=\/wp\/v2\/posts\/86823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vallamai.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vallamai.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vallamai.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vallamai.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=86823"}],"version-history":[{"count":0,"href":"https:\/\/www.vallamai.com\/index.php?rest_route=\/wp\/v2\/posts\/86823\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vallamai.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=86823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vallamai.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=86823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vallamai.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=86823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}