The Future of Things: Impact of IoT on the Insurance Industry The insurance industry has been slow to embrace the Internet of Things (IoT), but it is steadily catching up. In the wake of the COVID-19 pandemic and the resulting shift in customer expectations and behavior, insurance companies are increasingly focusing on leveraging IoT to reap the benefits of faster claims settlements, improved operability, and more responsive services.
The Significance of IoT in Insurance The Internet of Things and insurance industry already offers an array of possibilities when it comes to business process automation. IoT is key to facilitating real-time communication between devices and systems that are located miles apart. Apart from helping insurers in sundry ways such as fraud detection, loss prevention, and improved customer satisfaction, IoT in insurance also helps customers enjoy lower premiums.
Popular Use Cases of IoT in Insurance Across the insurance industry, IoT use cases are continuously expanding and evolving. Let’s have a look at the most popular applications of IoT in insurance.
Smart Housing In the modern-day and age, an increasing number of people are showing interest in smart home technology. Smart housing setups feature internet-connected appliances and devices
that can be automatically controlled remotely. For insurers, processing claims for such home setups becomes easier as the alerts for loss or damage get routed automatically through sensors. Moreover, the real-time data gathered from smart home devices transform how insurance businesses calculate risk.
Wearables The data collected from wearable devices is used for supplementing the underwriting process. It helps insurance companies improve claims cost prediction. Moreover, wearable devices are not just used to gather data. A number of smartwatches and fitness trackers also come with extended functionalities.
GPS Trackers The application of IoT in insurance is not just limited to home equipment and wearables, but it also extends to GPS trackers. While encouraging safe and sane driving, GPS trackers also increase the likelihood of recovery of stolen assets. Furthermore, they help insurers accurately assess the damages caused by accidents and reduce the risk of fraudulent insurance claims.
Final Words Traditional insurance businesses typically face a common challenge- skewed distribution of data. By using IoT, insurance companies can improve their processes. The benefits of adopting IoT include more accurate fraud detection, better customer satisfaction, and faster claims settlement. All in all, IoT in insurance offers several opportunities to solve problems and add value to insurance services. Source: https://www.linkedin.com/pulse/future-things-impact-iot-insurance-industry-richardleo/