The Impact of IoT’s On Your Coverage

At RSM Tasmania Insurance Brokers Hobart we want to keep you up-to-date!

In our article last week “AI and Small Business insurance” we mentioned IoT devices, and we received a few calls asking what they are. So this week we are looking at the fascinating world of IoT devices and how they’re impacting both business and personal insurance.

If you’ve ever wondered what IoT stands for and how it affects your insurance needs, this article is for you.

What Are IoT Devices?

IoT stands for the ‘Internet of Things’.

Simply put, IoT devices are everyday objects that are connected to the internet and can communicate with each other. These devices are equipped with sensors, software, and other technologies that allow them to collect and exchange data. Examples include:

Smart Home Devices: Think of thermostats, light bulbs, and security systems that you can control with your smartphone.
Wearables: Fitness trackers and smartwatches that monitor your health and fitness levels.
Industrial IoT: Machines and equipment in factories that use sensors to monitor performance and predict maintenance needs.
Smart Appliances: Refrigerators, ovens, and washing machines that can send alerts and be managed remotely.
Connected Cars: Vehicles that offer navigation, diagnostics, and entertainment features through internet connectivity.
Healthcare Devices: Medical devices that track vital signs and send data to healthcare providers for remote monitoring.

These devices are revolutionising the way we live and work, and they’re also having a significant impact on the insurance industry.

For small businesses, IoT devices can be a game-changer and they are certainly having an affect on business insurance.

Improved Risk Management

IoT devices can help businesses monitor and manage risks in real-time. For example, smart sensors in a factory can detect unusual vibrations in machinery, indicating a potential breakdown before it happens.

This allows business owners to perform maintenance proactively, reducing the risk of costly equipment failures and downtime. Insurers can use this data to offer more accurate and lower premiums for businesses that demonstrate good risk management practices.

Enhanced Security

Smart security systems, including cameras and motion detectors, can protect business premises more effectively. These systems can alert business owners and law enforcement in real-time if there’s a security breach. Improved security measures can lead to lower premiums as the risk of theft and vandalism decreases.

Real-Time Data for Claims

In the event of a claim, IoT devices can provide valuable data to insurers. For instance, a connected security camera can offer footage of an incident, speeding up the claims process and reducing disputes. This means businesses can get back on their feet faster after an incident.

IoT Devices and Personal Insurance

On the personal front, IoT devices are also making waves. Here’s how they’re influencing personal insurance:

Home Insurance

Smart home devices can help protect your home and reduce insurance premiums. For example, smart smoke detectors can alert you and the fire department instantly, potentially minimising fire damage. Smart locks and security cameras can deter burglars and provide evidence if a break-in occurs.

Health Insurance

Wearable devices like fitness trackers and smartwatches monitor your health metrics, such as heart rate, activity levels, and sleep patterns. Some health insurers offer discounts or rewards for policyholders who maintain a healthy lifestyle, as evidenced by the data from their wearables.

Car Insurance

Connected cars equipped with telematics devices can monitor your driving habits. Insurers can offer usage-based insurance (UBI) policies, where premiums are based on how safely you drive. Safe drivers can benefit from lower premiums, while those with risky driving habits might see higher rates.

The Future of IoT and Insurance

As IoT technology continues to evolve, its impact on the insurance industry will only grow. Insurers will increasingly rely on data from IoT devices to assess risks more accurately, offer personalised policies, and improve claims processing.

However, with the rise of IoT devices comes the need for increased cybersecurity. As more devices become connected, the risk of cyber-attacks also increases. Businesses and individuals must ensure their IoT devices are secure to protect their data and privacy.


IoT devices are transforming the insurance landscape, offering new opportunities for better risk management, enhanced security, and more personalised policies. Whether you’re a business owner looking to protect your operations or an individual seeking to safeguard your home and health, understanding how IoT devices impact your insurance needs is crucial.

At RSM Tasmania, we’re here to help you understand this evolving area. Give us a call to review your current policies and explore how IoT devices can help you secure better coverage and potentially lower premiums.

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart

Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email

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