Internet of Thing (IoT) is looking over to overhaul the business processes of many industries including insurance domain. The current line of business such as Property and Casualty, Health, and Life Insurance can avail tremendous benefits from the contextual and relevant data being generated from billions of connected devices; Smartphone's, wearable gadget and other electronic smart sensors. For P&C insurer's the biggest challenges is not the rapidly changing environment but tackling these challenges with strategies linked to the past. This paper presents the key opportunities, challenges, potential applications and risks of IoT in Insurance domain. It crystallomancy on the efficient use of data analytics from data generated in IoT ecosystem and highlights business model changes that Insurance industries may face in near future.