DIGITAL TRANSFORMATION
financial discounts on their insurance ( 65 %), followed by helping to protect their home ( 51 %).
In an ideal world , insurers would be able to holistically monitor an insured ’ s home for risk and help prevent incidents . A smart ‘ home hub ’ would turn off a hob if it ’ s left on ; monitor smart plugs for surges ; lock a door if it ’ s still unlocked at night ; and close internal doors to prevent the spread of fire . Remarkably , all of these technologies exist , but it could be decades before they see mainstream adoption .
“The pandemic was a giant beta-test of behaviours that broke down barriers , removed distance and prioritised health and wellness ”
Connected devices and nat cat insurance One final area where connected devices can be used is in so-called ‘ nat cat ’ insurance . Insurers don ’ t need to use connected devices ( they can use trigger events ) but they can do ; one common area where connected devices are used in parametric insurance is with flood cover , monitoring water levels at an insured residence or business and paying out if a flood exceeds an agreed height .
Parametric insurance differs from traditional insurance in that it doesn ’ t directly indemnify the insured against the real-terms cost of the damage caused . Instead , an agreed amount is paid out automatically if a natural event meets predefined parameters
JANA ARBANAS VICE CHAIRMAN , DELOITTE
68 September 2022