It is an incontrovertible fact that IOT has the potential to disrupt the traditional insurance business and modernize the process. IOT refers to the connected devices that can transfer the data using technologies such as Wi-Fi and Bluetooth. These devices include devices such as wearable devices, sensors in houses and connected devices.
No doubt, Insurance is the world’s oldest industries and the idea began around 4500 years back when some merchants combined the cargo on multiple ships. No doubt, there was a risk but merchants had an insurance that if a ship went down, their stock will not be completely wiped out.
Today, the consumers are not likely to transport merchandise across the sea, but the basic idea of insurance has not changed much. But now this accustomed industry is being pushed into the modern era with the help of the Internet of Things (IoT).
No doubt the technology can impact many industries but IOT has redefined the insurance industry.
In everyday lives, customers use technology and they expect everything around them to be technologically driven. Only 14% of customers have claimed that they are satisfied with Insurtech companies.
But, how will insurance providers make their offerings when we all have self-driven cars? One day, if everyone uses health monitoring devices, how will insurers provide health insurance to their customers? How much insurance will one pay if their house is already monitored 24*7? Why will a consumer make an effort to stand in long queue and fill out the countless forms?
And to resolve all the above concerns IOT has to come into the picture. Insurance Companies can build products that combine insurance with IOT technology and data.
Well, it is all about connecting the insurance sector with clients and their risks. Presently, there are more than 1200 Insurtech startups and most of them are connected to the internet. And apart from that, there are Insurtech Conferences taking place all over the world to promote the Insurance industry. IOT helps in providing more data to the insurance sector and it helps in determining the rates and provide varied services.
Let us look at how IOT can help Insurers in different sectors-
Car Data for Insurance
Most of the insurance companies are working actively to build IOT insurance products that meet the ever-changing demands of the evolving world. Mobile phones can be used as sensors to provide data on consumer driving habits.
Smart Home for Insurance
It has been noted that smart home systems offer insurance companies to reinvent the business models by helping customers to secure their property. The Internet of Things provides opportunities to product-service bundle. This will reduce the chances of damage and reduce the risk.
Health and Prevention
It is an indisputable fact that someone with diabetes will spend more on life insurance. He/She is more likely to use the fitness tracker to meet certain goals. Health Technologies are giving insurance providers vast data and it can be used to price the rates more profitably.
In today’s world, customers want the results right away. It can be really frustrating when insurance companies claim that they will take weeks or months to process the work.
However, IOT allows insurers to move more rapidly and make strong decisions. The companies would not need to struggle through paperwork and they can move more efficiently. They can make use of mobile apps by submitting their claims online.
Data can really help the insurers to know their customers on a deeper level with more personal information. It can help in creating powerful bonds and will add the element of customization.
Apart from improving customer engagement, IOT helps the insurers to cut costs. The automation can cut the cost up to 30%. A study has shown that Insurtech companies save as much as 25%, as compared to Insurance companies.
And to foster the growth of Insurtech companies, companies also conduct Insurtech Conferences and Insurtech workshops. Insurance companies can take the help of Insurtech Conferences to stimulate their business.
One of the biggest beneficiaries is the that the IOT Market is maturing quickly and it will affect the Insurance Companies. It is a key to build an effective business at an early stage. It is an insightful dive into the developing relationship between the insurance industry and the Internet of Things.
IOT can revolutionize the industry and customer engagement. It will prepare the organization for the market revolution and it will help to ensure that your needs are well represented.
The need of the hour is the forward-thinking approach and the transformation in the Insurance sector which will come through IOT.