What brokers need to know:
How IoT is changing risk management

When people think of insurance, they often picture forms, claims, and paperwork. But with today’s tech shaping how risks are managed, that story is shifting—and brokers are in a unique position to guide their clients through it.

 

The Internet of Things (IoT) is one of the biggest drivers of this change. Think sensors that monitor temperature, water flow, or air pressure, all feeding data back in real time. For brokers, this means supporting clients as they move from a reactive approach to be more proactive. It’s no longer just about stepping in during a crisis. It’s about helping clients spot issues before they happen.

 

Brokers are evolving—and so are the conversations they’re having with clients.

 

With the right tools in place, brokers can take on a more active, long-term role in helping businesses run better and safer. One way they can do this is to introduce them to tools and devices like sensors that make it easier to catch risks before they turn into disruptions. Real-time data means faster alerts. Businesses don’t have to rely on scheduled checks or wait for an incident to know something’s wrong, and brokers can help clients act early to prevent damage and avoid downtime.

 

Take Davies Chocolates, for example. Temperature control is critical to their product quality, and one hot day could mean spoilage or financial loss for the family-run business. By using sensors that trigger alerts the moment temperatures go beyond safe limits, they can fix issues fast, avoiding stock loss, dissatisfied customers, and unnecessary claims. For them, “a bloody sensor” made all the difference.

 

When clients see how these tools help simplify operations and save costs, the broker relationship often strengthens too. By pairing insurance with connected monitoring tools, brokers can offer more than just protection; they can provide a full-circle risk solution. IoT tech helps businesses stay ahead of common issues, making day-to-day operations safer and more efficient. It’s a smarter way to manage risks, and clients appreciate having both coverage and prevention built into a single offering.

 

Brokers who introduce tailored solutions are seeing results; from fewer claims to smoother processes and more trust. Using data well means everyone gets more value. Clients protect their people and assets, brokers build credibility, and insurers benefit from simpler, more efficient claims.

Proactive risk management isn’t just a trend. It’s becoming the standard. With tools like IoT-powered monitoring, brokers can support clients before risks escalate, not just after. It’s not about replacing traditional insurance; it’s about making it work harder, earlier, and more often.

 

Interested in learning more? Click below to read more, including case studies across hospitality, in our exclusive feature with Insurance Business.