You have just arrived at your favorite holiday destination and reached the hotel reception on a busy morning. It shouldn’t matter to you today if the hotel reception is crowded or there is no one available to help you with check-in. You will directly walk over to the self-service kiosk, enter your booking details, and scan your passport. The check-in process is completed in no time and you are provided with your room details. The kiosk even vends out your swipe card!

Technology is booming now more than ever, and every day brings new products and functionality for every unimaginable task. It is not just about mobile apps and computers anymore; instead, it is all about embedded systems and Internet-of-Things (IoT) devices that have quickly become so commonplace in our day-to-day lives. It feels like these devices are running software for just about everything: baby monitors, speakers, fitness trackers, security cameras, thermostats, and vehicles to name just a few.

Traditional businesses are projected to be disrupted and revolutionized at an unprecedented rate as the Internet of Things (IoT) emerges. These new technologies have the potential to benefit the insurance business, which has been hesitant to adapt in the past. Before we get into how the Internet of Things will affect insurance, let’s define what we mean by “IoT” in this context.