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Cyber Risks: Learning to Utilise the Internet of Things

There are more digitally connected devices than there are people on the planet. These immense networks are capable of supporting an array of applications—from the mundane to the sophisticated—and can help propel economic opportunities. This vast interconnected system of devices, vehicles and even entire buildings are all part of the Internet of Things (IoT).

Despite the potential benefits of utilising the IoT to bolster your company, there are some associated hazards. But with the proper knowledge and preparation, you can effectively mitigate those risks while securely strengthening your company and reaping the benefits.

What is the Internet of Things?

Within the last decade, the availability of high-speed internet, smartphone use and microprocessor power have all increased. During that same time, both hardware costs and the size of the processors have steadily decreased.

As a result, it has become more practical and affordable to install devices with digital sensors and Wi-Fi capabilities, which has allowed innovative manufacturers and developers to connect ordinary, everyday devices to the internet.

In addition to smartphones, devices like fitness trackers, smartwatches and vehicle telematics devices are just a few examples of other devices that belong to the IoT. The defining characteristic of the IoT is not that your devices can connect to the internet, but the potential that is created when your devices connect to one another.

For example, your smartwatch has realised that you have overslept the morning of an appointment with your GP—so it instantly sends a new route to your car’s sat-nav to better account for traffic. It could also email your GP, warning that you may be late.

Telematics and Usage-based Insurance

Currently, the most common commercial use of devices connected through the IoT is for vehicle telematics. Some freight forwarding companies have begun installing the devices in lorries to track their drivers in real time to better analyse driver safety and vehicle performance.

If your company owns vehicles that are driven by employees, a telematics device may not only help improve the health and performance of the vehicle itself, but it could also reduce your operating costs as well. The device is able to achieve this through what is called ‘usage-based insurance’ (UBI).

UBI typically offers either a pay-as-you-go (PAYG) or pay-how-you-drive (PHYD) model. The PAYG models are the least invasive, using on-board devices hooked into the vehicle’s computers to calculate how many kilometres a person drives. The amount that your company may pay to insure your vehicles will then depend on the amount of kilometres that your employees have driven. However, your company may find the PHYD model to be more beneficial.

The PHYD model collects more data from your employees while they are behind the wheel—such as speed, acceleration, braking, time of day as well as other factors. As this is a more robust data set, the amount that your company may pay to insure would be affected by how safe or risky your employees drive. An additional benefit of the PHYD model is that you should receive a regular report detailing your employees’ driving habits, so that you may address any potential hazardous behaviours.

To discover information on wearables and smart devices as well as privacy and cyber attacks, continue reading below:

Cyber Risks & Liabilities: Learning to Utilise the Internet of Things

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