Networked world
Risks and opportunities in the Internet of Things
A Lloyd's emerging risk report
The Internet of Things (IoT) – devices that are connected to the Internet and collect and use data to operate – is about to transform society. Everything from smart fridges and lightbulbs to remote sensors and cities will collect data that can be analysed and used to provide a wealth of bespoke products and services.
The impacts will be huge - by 2020, some 25 billion devices will be connected to the Internet with some studies estimating this number will rise to 125 billion in 2030. These will include many things that have never been connected to the Internet before. Like all new technologies, IoT offers substantial new opportunities which must be considered in parallel with the new risks that come with it.
To make sense of this new world, Lloyd’s worked with University College London’s (UCL) Department of Science, Technology, Engineering and Public Policy (STEaPP) and the PETRAS IoT Research Hub to publish this report.
‘Networked world’ analyses IoT’s opportunities, risks and regulatory landscape.
It aims to help insurers understand potential exposures across marine, smart homes, water infrastructure and agriculture while highlighting the implications for insurance operations and product development.
The report also helps risk managers assess how this technology could impact their businesses and consider how they can mitigate associated risks.
Critical water infrastructure scenario: Algorithmic supply bias
Agriculture scenario: Miscalculation of soil moisture leads to crop losses
Smart home scenario: Psychological harm
Marine scenario: Hacking and vessel piracy