Global insurance industries is inflowing a different phase of disruptive changes driven by the IoT- Internet of Things. In last fifteen years insurance industry has experienced significant technology-driven change.
IoT is changing the nature of insurance
An IoT can change the fundamental nature of insurance propositions.
Here are some of the methods in which internet of things can transform today’s mainstream offering of insurance.
- Minimize the potential claims
IoT devices can not only perceive an incident but also initiate an automatic response to decrease the cost.
- Mass market
With raise in functionality or ubiquity of sensors the IoT technology allows insurers to provide high insurance offerings.
- Risk-based charging
IoT offers true usage and risk-based insurance. With premium rates the rates are adjusted accordingly.
Say, auto insurance would be charged high pay rates while driving late at night- in winter. But it would be reduce while driving in daylight.
- Encourage modification of risky behavior
There is substantial scope of modification of potential risky behaviors when insurer incorporates feedbacks to IoT.
There are various similar apps that offer feedbacks on such habits and it reduces the poor driving behavior. Using IoT technology you can monitor the tire and break pad wear.
- Provide platform for new service elements
IoT technologies can provide the platform for development of innovative services which can minimize the use of capturing the accuracy of data and enhance the customer satisfactions in such areas like claims submission.