5G is the next generation of mobile internet connection offering much faster data download and upload speeds. Through a greater use of the radio spectrum, far more devices will be able to access the mobile internet at the same time2. For example in an industrial setting 5G could allow users to control up to a million devices per square kilometre.
According to Cambridge Wireless1, 5G has the potential to stimulate $13.2 trillion in global sales activity by 2035 and the number of connected devices will reach 43 billion by 2023.
Our Allianz expert James Tucker, Transformational Propositions Manager looks at 5G and the difference to 4G, as well as what it will mean for smart devices and the industry applications.
What is 5G and what will it mean for connectivity?
How does 5G differ from 4G?
5G is a higher speed network which has more bandwidth so more devices can be connected and transfer more data at a higher speed (resulting in quicker point to point connections -lower latency) compared to an equivalent 4G network.
How will 5G impact businesses?
There is an ever growing amount of connected devices, so 4G networks will not be able to continually expand to carry all of this data without performance issues, such as slowing or dropping connections.
The smart factory, industrial Internet of Things or Industry 4.0 will exploit 5G for faster connections and more reliable connectivity. This allows faster decision making by automated processes, autonomous production, collaborating robots, and highly coordinated logistics. In addition to this, maintenance can be enhanced by the creation of identical virtual worlds in real time.
Many businesses are looking at the option of local 5G networks, which could be deployed across a large campus. One example of a business utilising this to create a smart factory is the collaboration between Ford and Vodafone, who are launching a 5G ‘factory of the future’ for electric vehicles. In this case, plant and machinery will be connected to high speed data right across the estate to optimise productivity and efficiency.
What does this mean for brokers and how can they advise their clients?
Brokers should stay informed about the business benefits of 5G as end customers and insurers can benefit through sharing Internet of Things data. Also, where connected insurance products are available, these may offer new and unique benefits to customers. We’ve seen this already in the area of connected vehicle fleets and now we expect to see even more connected devices elsewhere in insurance.
Will current insurance products just be developed or will new ones have to be created to support 5G?
Both are possible, the important thing is that future insurance products take into account and use the data which is available for what they are insuring whether this is through using 3G, 4G or 5G or over some other network. We are not talking about changing everything, just sharing enriched data and processes which will help the industry and be useful for insurers.
Author
James Tucker
Transformational Propositions Manager
Allianz UK
As Transformational Propositions Manager, my job is to help with the development of new disruptive propositions for our customers at Allianz. I provide both strategic and technological input as well as, manage the various projects and proof of concepts we are running.
What is your experience related to smart technology?
In the past, I have worked in many different technological roles related to fraud, data and networks. While at Allianz my roles have related to telematics, the Internet of Things and smart technology which has given me a broad insight into how data can solve customer problems and add value, whilst providing benefits to the business’ day-to-day operations.
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Commentary and guidance in this article are provided for information purposes only and are not intended to amount to advice on which reliance should be placed. Readers should seek further advice when dealing with their individual and particular situations. Allianz Insurance plc shall have no liability for any action taken as a result of and in reliance on the information contained in this article.