The Internet of Things and Insurance

Abstract

The Internet of Things (“IoT”) is one of the major Internet-driven technological evolutions of our times. It is a network of devices, sensors, appliances, people connected to the Internet and to each other. IoT solutions are already being extensively used in numerous consumer, commercial, industrial and infrastructure applications, opening up new product and service opportunities across economy sectors, while at the same time creating new regulatory and business challenges. In this context, IoT has entered into the insurance industry as a significant disruption. This chapter aims to provide an overview of the ways in which IoT applications are affecting the insurance value chain and the insurer–customer relationship, as well as some thoughts on the possible interplay between IoT solutions and the applicable insurance law provisions (Sect. 2). Particular reference is made to IoT implications on the notion of the insurance risk, which is crucial and fundamental to the industry (Sect. 3), as well as to its effects on the civil liability model, where the allocation of liability and the ensuing obligations of the insurer shall have to be considered (Sect. 4).