Could IoT’s consumer data riches save insurers $6 billion a year?

Could IoT’s consumer data riches save insurers $6 billion a year?

A new partnership aims to harness insights from Internet of Things (IoT) devices to save insurance companies a passel.

At the recent Consumer Electronics Show, ROC-Connect said it is partnering with CoreLogic to assist insurers in bringing IoT devices to market.

ROC-Connect is a Silicon Valley-based firm that specializes in providing Smart Home as a Service capabilities. Headquartered in Irvine, Calif., CoreLogic provides financial, property and consumer information.

The partnership is looking to use IoT devices to help insurers better assess risk, which is a segment with considerable potential for growth. The Boston Consultancy Group estimates that real-time data from smart devices could reduce the $10 billion in annual U.S. claims by between 40% and 60%.

“Insurance companies will benefit because for the first time, they will have data that shows that the devices are fitted and functional in the consumer’s home,” said ROC-Connect’s Kevin Meagher. “We will move from the crazy position we are in today where insurance companies are offering discounts on security systems and fire sensors when 50% of customers do not switch the alarm on and there are no batteries in the fire sensor.”

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