The latest developments across the P&C insurance industry regarding fraud, risk and compliance.
28 May 2018

Internet of Things a Goldmine for Insurers?

Let’s say you speed through the supermarket for some groceries. At home you find out that you forgot the milk. So, back to the shop isn’t? No, Stop! There is a smarter solution: a fridge equipped with sensors connected to the internet. The sensors register when you’re low on milk and the fridge automatically orders new ones. The supplier then delivers the order to your home within a specific timeframe. That means no more hassle for you. Despite not being widely used in practice, the smart fridge is probably the best example of the Internet of Things. Linking devices to the internet is on the rise and the possibilities are endless. You’d expect all of this information to be a goldmine for insurance companies, but is it?

Smart home gadgets

Internet of Things (IoT) Smart Home

Smart home devices can function independently and take over certain tasks: temperature regulation and lighting based on absence or presence; intelligent security that knows who’s home and allows you to open doors remotely; appliances that learn your habits (coffee at 08:30 AM every day, except for Sundays, when it’s a espresso at 09:30); the home assistant that learns from your choices and, makes film and music recommendations; the eHealth system that helps elderly people live at home longer and supports people with chronic illnesses or disabilities.

Smart world

Devices like these are connecting the world and making it smarter. In cities, traffic can be regulated more efficiently, which means no more waiting for a red light. This will ultimately force traffic light manufacturers to search for new product lines. The environment can be monitored, as can our safety. In many places, indoor and outdoor cameras record our every move and our mobile devices track our location. So do our cars. Information about the technical health of your car and your driving behaviour can be recorded and shared. Ultimately, all vehicles will be connected to each other and to the environment to regulate traffic safely and efficiently.

Internet of Things and security

An estimated 25 billion devices are connected to the internet worldwide. And that’s just the beginning. All of these connected devices are potential windows to our personal information, giving hackers unlimited opportunities to wreak havoc. They could retrieve valuable information such as passwords, bank account details and private photos. And it doesn’t stop at information theft. The Internet of Things also makes it possible for hackers to take over devices. They can hijack your computer until you pay a ransom. Hackers can see you on your security camera and blackmail you with images you don’t want others to see. These are just a few obvious examples.

Opportunities for insurance companies?

Internet of Things (IoT) Connected World

Taking out insurance policies and processing damage claims responsibly requires information. Information about the policyholder, the insured objects and the circumstances in which the damage occurred. Information is also an important tool for marketing and product development. You’d expect insurance companies to eagerly harness the information generated by the Internet of Things, but, in general, they don’t.


Insurance companies can use Internet of Things as a strategy to offer additional services to policyholders. For example, they could notify home-owners when their boiler is due for maintenance or when their home is sensitive to break-ins. They could also identify the cause of a fire or other incident or link insurance implications to inadequate maintenance. Then there’s the preventive and cost-saving possibilities offered by eHealth applications.


Internet of Things (IoT) Self driving car

The Internet of Things has slowly been adopted by the automotive industry. The technical condition of a car can now be monitored and driving behaviour observed. If essential components are not being properly maintained, it could have insurance implications. The same applies to irresponsible driving styles that lead to dangerous situations or accidents. It’s also possible to use telematics to quickly determine the scope and cost of damage without having to call in an expert. Sensors in the car register the exact location and the extent of the damage. This innovation also makes it easier to determine fault. It’s also possible to take out an on-demand insurance policy, which means the all-risk coverage is only activated when the car is in use.

On-Demand insurance

On-demand insurance coverage is now available on a limited scale, allowing users to arrange or activate their policies on their mobile devices. Using location positioning, your phone can determine that you’re at Schiphol Airport and prompt you to activate your travel insurance. It can also warn you that you’re in an area known for high pickpocketing rates.

Untapped potential for insurance companies

The Internet of Things offers endless possibilities. In fact, we haven’t even scratched the surface of what’s possible and what will one day become possible. That said, it also evokes images that some may find disturbing: Big Brother is watching you. Who wants to be constantly monitored or receive constant unsolicited advice? And there’s another practical obstacle: the generated data isn’t available to just anyone. Fortunately for us, there are privacy laws in place and most data is controlled by specific parties, like car manufacturers, energy companies and security firms. Partnerships are therefore necessary to gain access to this information. The question is whether these partnerships are profitable for insurers.

The Internet of Things is here and it’s growing exponentially. For insurers this appears to be an untapped area that indeed holds certain obstacles, but at the same time has the potential for great opportunities.

Contact us

Cookie and Privacy Policy

1. Introduction

When you use this website, FRISS may collect information about your use of the website and the content offered. We believe it is important to handle your (personal) data with due care and confidentiality. When processing your personal data, we comply with the General Data Protection Regulation (Algemene Verordening Gegevensbescherming) and Article 11.7a of the Telecommunications Act (Telecommunicatiewet).

1.1.  Controller

The controller of the processing of personal data is:

FRISS Fraudebestrijding B.V.
Orteliuslaan 15
3528 BA

This processing of personal data is registered with the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) in The Hague under reporting number m00004997.

1.2.  Purposes of data processing

There are several places on our website where you can fill in your (personal) data. We will explain the purposes of the various instances of data processing below.

Filling in the contact form or sending an e-mail

If you fill in the contact form on our website or send us an e-mail, we will only use the (personal) data you provide for the purpose or purposes for which you filled in the contact form or sent the e-mail.

Download form

If you download files on our website (such as e-books, whitepapers or reports), we will use the (personal) data you provide for one or more of the following purposes:

  • for the execution of an agreement, for example to send you the e-book, whitepaper or report you have chosen;
  • for the formation of an agreement, for example by contacting you by telephone or in writing.


If you fill in the application form for the newsletter on our website, your (personal) data will be used to send you the newsletter. Each newsletter contains a hyperlink at the bottom of the message that you can use to unsubscribe.

In addition to the personal data you provide to FRISS yourself, FRISS may collect, record and process additional (personal) data if you use the (web) services of FRISS. This concerns the following personal data:

  • data from the used equipment, such as a unique device ID, version of the operating system and settings of the device you use to access a service;
  • information about the use of a service, such as the time at which you use the service and the type of service that is used;
  • location details from your device or derived from your IP address that is provided to us when you use a particular service;
  • data available from external sources. We may receive information about you from public or commercially available sources.

1.3.  Provision of (personal) data to third parties

Your (personal) data will never be provided to third parties without your permission, unless we have an obligation to do so pursuant to legislation or regulations or you have given permission for this.

1.4.  Security of data

FRISS respects your privacy and ensures that personal data are handled confidentially and with the utmost care. All processed (personal) data is stored exclusively in secure databases. These databases are only accessible to employees of FRISS, to the extent that this access is required by virtue of their position. FRISS makes every effort to secure these systems against loss and/or any form of unlawful use or processing.

1.5.  Inspection, correction and deletion of data and the right to object

You can view your data that is processed by FRISS at any time and free of charge and, if you so wish, modify this data or have it deleted. You can also object to receiving information about products, services or content of FRISS. If you wish to make use of one of these options, you can send an e-mail to the Data Protection Officer of FRISS via privacy@friss.eu or write to the following address:

FRISS | fraud, risk & compliance
Attn. Data Protection Officer
Orteliuslaan 15
3528 BA Utrecht.

2. Cookies

When using this website, information about your use of these services and other websites may be collected by or on behalf of FRISS, for example by means of cookies.

A cookie is a small file that is sent along with pages of a website and stored by your browser on the hard disk of your computer. We use cookies to remember settings and preferences. You can disable these cookies via your browser.

2.1.  The purposes for which FRISS uses cookies

On our website we use cookies for the following purposes:

  • for statistical purposes, in order to analyse the use of FRISS websites. This allows us to keep track of the number of visitors and see which parts of our website are popular. We use Google Analytics in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by Google;
  • for what is known as ‘targeting’ purposes, if you have used the download form. By targeting we mean building a profile of you based on your surfing behaviour on our website, after which we may contact you by telephone or e-mail based on the interests you have shown in order to offer you FRISS services that you may be interested in. We use HubSpot in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by HubSpot;

3. Changes to this Cookie and Privacy Statement

FRISS may make changes to this Cookie and Privacy Statement. All modifications will be published on this page. We advise you to consult this Cookie and Privacy Statement regularly, so that you are always aware of the content of the current Cookie and Privacy Statement.