Internet of Things (IoT) platform relayr and specialty insurer Hartford Steam Boiler (HSB) are teaming up to develop customized insurance products to protect IoT investments.
Companies heavily investing in IoT technology and infrastructure could protect their return on investment through a new initiative of “IoT-enabled” insurance products from relayr and HSB. The two giants of their respective industries are working together to provide financial confidence for customers investing in IoT technology.
In a move that relayr co-founder Josef Brunner has said will transform the entire IoT landscape, HSB will help craft customized insurance products for its customers, providing the financial confidence needed to make IoT investments. The partnership represents the insurance industry’s first industrial IoT-specific set of solutions.
“People have long talked about the potential savings and increased efficiencies that are going to be possible with the Internet of Things,” said Brunner. “But now, we are doing much more than talking about it. We are literally going to do it.”
As well as partnering with relayr for IoT insurance, HSB Ventures is leading a $23 million financing round for the Boston-based IoT provider, which is being supported by, among others, renowned Silicon Valley venture firm, Kleiner Perkins Caufield & Byers.
Read more: Apple, EVRYTHNG announce new IoT insurance partnerships
Real-time nature of IoT allows insurers to protect investments
Greg Barats, president and chief executive officer of HSB, pointed out that the new insurance solutions are only possible because of the IoT itself; namely the way it provides continuous information in real-time that HSB can apply to make informed underwriting decisions.
“We’re excited about collaborating with relayr to combine insurance solutions with their IoT applications,” Barats said. “HSB can help relayr’s clients have confidence in their IoT investments by creating financial assurance that they will benefit, whether it involves increasing output, decreasing downtime, developing new revenue streams or reducing maintenance costs.”
Relayr co-founder Brunner suggested that the IoT insurance partnership with HSB stands to benefit not just the companies working with them directly, but also the customers of those companies.
Related: Why Hartford Steam Boiler is investing in Internet of Things start-ups
relayr partnership is “a step toward a comprehensive IoT-based business model”
One of relayr’s industrial clients in IoT is global elevator and escalator provider Schindler.
“As a customer from the early days, I am very pleased with their strategic eco-system development,” said Michael Nilles, Schindler’s chief digital officer. “The new partnerships will allow relayr to further expand their business scope from technology towards comprehensive IoT-based business model offerings for the benefit of existing and new customers.”
Related: Speciality insurer HSB turns to IoT to improve risk management