4. Tailored insurance
When combined with IoT technologies, blockchain software has the power to revolutionise the insurance industry.
Taking car insurance as the first example; with blockchain, a vehicle’s complete history, along with that of its driver, can be accessed by insurers to gain a holistic picture of the possible risk a driver/vehicle poses. This, in turn, means that insurers can tailor their premiums and cover levels to more accurately reflect the customer.
The same is true of home and health insurance. The IoT’s connected devices can give a complete picture of a person’s home security measures or health factors, allowing insurance providers to tailor their services and premiums accordingly.
And this doesn’t only favour the insurer. From the insured’s point of view, the claims process is simplified because all of the data required to examine a claim is stored immutably on the blockchain, providing easy access for the insurer. Furthermore, good efforts—i.e. safe driving, taking care of one’s health and bolstering home security—are rewarded with lower premiums.
5. Smart cities
Interest in developing smart cities is growing, with a focus on establishing connected infrastructure which will enable new urban efficiencies and better public utilities and services, such as:
- intelligent transportation systems – including GPS car navigation, traffic signal control systems, auto-recognition of vehicle registration plates and smart speed cameras.
- smart grids – including advanced metering, smart distribution boards, renewable and energy-efficient resources such as EVC solutions.
- industry 4.0 – blockchain and IoT can allow companies to create digital twins and take advantage of the business and product modelling that this offers.
- healthcare 5.0 – a shift towards a completely patient-centric, on-demand, customisable healthcare model.
But, as with all aspects of a connected society, these possibilities bring with them concerns about the security and integrity of the vast body of highly sensitive data being collected through IoT devices.
With blockchain, information gathered is stored in a peer-to-peer decentralised, transparent and immutable ledger, which is significantly harder to compromise. According to research by Griffith University, Australia, a hacker would need to compromise more than half of the entire blockchain network in order to gain access to, and do harm with, blockchain-stored data. This means that a critical attack against blockchain systems is implausible.
With the number of users connected to IoT devices expected to exceed 45 billion by 2023, digital infrastructure will, without a doubt, underpin many aspects of life moving forward. The transparency and security that blockchain can bring to data gathered by IoT devices will help ensure that organisations, from individual firms to entire cities, can adopt digital transformations smoothly and safely.
Let’s discuss the potential of IoT and blockchain for your organisation. Contact us today!
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