A  specialised  cargo insurance product launched in April by Aon for  global  COVID-19 vaccine shipments  is a game changer  for the insurance industry, according to  GlobalData.

The  London-based data analytics and consulting firm says the product’s use of sensor data and analytics to monitor in real-time the temperatures of  vaccines as they are  being  transported shows  how  Internet of Things (IoT)  can support insurers going forward.

“Through Aon’s insurance product, if vaccine temperatures drop outside the pre-established temperature range policyholders are entitled to a claims payout,” GlobalData  Analyst Jazmin Chong said.

“Aon’s product is a game-changer as the insurer will be able to establish clear trigger points and have constant access to this information, therefore being able to settle a claim much more rapidly.”

She says  IoT usage also provides policyholders with tracking information for vaccine cargo.

IoT is a term that refers to the billions of physical devices such as cars and tablets that are connected to the Internet, collecting and sharing data.

The Aon product, the result of a collaboration with  leading  insurers and  insurtech  Parsyl,  represents an important usage of IoT in the insurance market, as well as offering insight into how vaccine providers are trying to mitigate risk.

“Going forward, IoT devices will play an integral role in the insurance industry,”  Ms Chong said.  “Their usage will offer a more creative way of protecting against certain risks and streamlining the claims process,  benefits that will help drive uptake.”

The Geneva Association, an insurance industry think-tank,  recently said IoT is the way forward for insurance providers.

It released a report in May, highlighting how leading insurers such as Axa XL and Munich Re are already using IoT in their risk mitigation products.

Where risk prevention is concerned, IoT can be an asset in real-time risk mitigation solutions and promotion of less risky  behaviours, the report says.