According to MIT Technology Review, some insurance companies are giving discounts for smart devices.
Insurers across the U.S. are offering incentives to install one of half a dozen connected devices, ranging from moisture sensors to video doorbells. State Farm offers a discount on your home policy for installing a Canary home security monitor, for example. Liberty Mutual will send you a Nest Protect smoke detector, worth $99, free of charge and cut the cost of fire coverage.
Here is another Brookings article talking about the “internet of things” and productivity.
Nearly 30 years ago, the economists Robert Solow and Stephen Roach caused a stir when they pointed out that, for all the billions of dollars being invested in information technology, there was no evidence of a payoff in productivity…
By the late 1990s, the economists Erik Brynjolfsson and Lorin Hitt had disproved the productivity paradox, uncovering problems in the way service-sector productivity was measured and, more important, noting that there was generally a long lag between technology investments and productivity gains.
Our own research at the time found a large jump in productivity in the late 1990s, driven largely by efficiencies made possible by earlier investments in information technology. These gains were visible in several sectors, including retail, wholesale trade, financial services, and the computer industry itself. The greatest productivity improvements were not the result of information technology on its own, but by its combination with process changes and organizational and managerial innovations.
So we can expect a delayed productivity effect. The real question to me is not just whether this will happen, but whether the productivity gain will translate into better quality of life for most people. If productivity per hour of work goes up, that would mean economic growth if people keep working the same amount. But it can instead mean there are fewer jobs for people to do. A small number of companies and individuals might then reap the benefits, and it might not benefit the average person.
Here’s a McKinsey report on the potential economic value of the internet of things – they say $3-11 trillion per year in 2025, or up to 11% of the world economy.
The digitization of machines, vehicles, and other elements of the physical world is a powerful idea. Even at this early stage, the IoT is starting to have a real impact by changing how goods are made and distributed, how products are serviced and refined, and how doctors and patients manage health and wellness. But capturing the full potential of IoT applications will require innovation in technologies and business models, as well as investment in new capabilities and talent. With policy actions to encourage interoperability, ensure security, and protect privacy and property rights, the Internet of Things can begin to reach its full potential—especially if leaders truly embrace data-driven decision making.