The global Internet of Things insurance market is expected to grow at a CAGR of 65.89 percent by 2022, reaching a market size of $42.76 billion.
That’s according to a new report from Research and Markets, which said the IoT insurance market is being driven by the adoption of IoT products in developed and developing economies and growing demand for cloud platforms and other services in the insurance industry. According to a press release highlighting the new research, Research and Markets said a lot of the IoT devices offer up intelligent data for insurers to aid in tracking health, detecting abnormalities and reducing risks for policyholders. The real-time data, argued the report, would enhance the relationship between insurers and policyholders.
“Most of the automotive insurance industries offer usage-based insurance for drivers and car owners. The IoT-based devices, such as in-vehicle sensors, global positioning systems and other on-board devices, generate informative data for [the] insurance industry,” Research and Markets wrote in the release. “Data such as speed, acceleration and distance driven is collected by insurers and is used to accurately access premium policies and reduce frauds.”
What’s more, the research firm pointed out that policyholders are able to get rewards for good behavior when it comes to driving and when they improve their driving habits, which means IoT would be able reduce the cost of premiums and strengthen the relationship between the customer and the insurer.
In January, Research and Markets issued another report in which it sized the IoT Identity Access Management (IAM) market, saying it is expected to explode in the coming years. Research and Markets is projecting the market size to go from $1.1 billion in 2016 to $4.97 billion by 2021. That represents a CAGR of 35.2 percent from 2016 to 2021.