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a stream of data which can be used by home insurance companies to contemplate on

future challenges and mitigate them. IoT technology in home automation prompts

insurance companies to avoid false and high priced claims thereby maintaining sta-

bility between return on capital investment and customer benefit. Thus insurance

companies use apt combo marketing techniques such as purchase of IoT devices like

Canary-a device to detect intruders, Cocoon AI-smart security camera and Ring-a

smart video doorbell and discount on home insurance products.

Life Insurance

The IoT-connected wearable devices like fitness tracker and smart watches are used

to monitor the policyholders. Newly introduced PAYL (Pay-as-You-Live) products

are connected with the wellness of the customer thereby bringing in continuous

interaction and promoting more insurance products. For instance, if a customer is

traveling a temporary travel insurance is suggested. The policy holders are monitored

and rewarded with benefits like discounts in gym membership and organic products.

Normally life insurance policies are declined to the people who have health issues.

These people can benefit by a policy with a regular underwriting approach. UK-based

insurance company, Exeter, introduced the product "Managed Life" to the consumers

with type-2 diabetes [16]. This product is possible with real-time tracking using

connected IoT devices.

Health Insurance

IoT embedded medical devices, also known as wearables, have created a tremendous

change in the healthcare industry. These devices are used to observe parameters like

pressure and sugar level in the blood and pulse rate. The inclusion of wearable devices

into health insurance provides robust benefits to insurers and their consumers. The

data provided by the wearables gives the view on their consumer’s lifestyle and health

condition which enables the insurers to provide personalized solutions with financial

benefits. IoT wearable manufactures, health care providers, and insurance companies

are jointly working to provide budgetary real-time data capturing mechanisms with

AI for remote health monitoring. This monitoring system helps the health insurance

companies to lessen their claims by suggesting incentives to their policyholders.

3

Blockchain and IoT for Banking

Blockchain is a type of data structure used in Distributed Ledgers (DL) that stores and

transfers data from a block which is connected through a digital chain. Blockchain

uses cryptographic and algorithmic methods to record and match the data across the

network. DL is a shared record of transactions among the participants/nodes in the

network and. DL can be either permissioned or permissionless based on the rights

given to the network participants to alter the database with or without the permission

of a validator. It also can be public or private depending on the right given to the

participants to access the ledgers. For example, a new digital currency transaction

can be recorded and shared to a network of blockchain and once it is validated by