The convergence of new technologies like IoT and the growing demand to increase profit has lead to a critical turning point for many industries across the board. IoT’s conspicuous nature allows it to be packaged into a device of any size and this will have a profound impact in the insurance industry over the coming years. With IoT, an individual’s health, home and auto coverage will be connected to smart devices, which can help insurance companies give you better coverage plans that will be personalised to fit your preferences.
With IoT, the engagement process with cars and homes is getting smarter with every passing day. Smart devices in our homes cars and around us in general will have an important impact on the relationship that we share with our respective insurance companies.
Solutions for Vehicles
Companies like Nationwide Smartride and Progressive Snapshot use telematics and videos, which allows them to record the driver’s driving habits. Then these applications share real-time data with the insurance provider. These applications are based on IoT and can help the driver create a good reputation in the eyes of insurance companies, which will allow him to get discounts in insurance premiums. For insurance companies, this can be a great opportunity to understand its customers better and promote safe driving habits. This application will also alert insurance companies in case the driver is driving recklessly or is jumping traffic signals.
Solutions for Homes
Companies are building solutions that can help you maintain your home better than ever. These solutions are IoT-enabled and give you comprehensive information related to your home by detecting motion, sound, temperature, humidity and water. Some of the organisations that are already providing these solutions in the market include Nest, Notion and Rachio. Technologies like these will allow individuals to keep a tab on their home expenses and prevent minor issues from going major. Installation of such IoT devices, along with other home monitoring systems like fire alarms and burglar alarms will enable owners to be entitled to discounts when applying for home insurance.
Solutions for Health
IoT is already proving to be a major player in the consumer health sector with companies like Fitbit and Jawbone flooding the market with a wide variety of fitness accessories. Companies like LG are also coming out with smart accessories that will help people keep a tab activity and diet. The possibilities with IoT-enabled consumer health care devices are endless. IoT will enable people to share their information with their healthcare service provider. This will include information like daily activity habits and food intake. This can help people demonstrate preventive behaviour to their insurance provider.
With IoT continuing to gain traction, the pool of data that the insurance companies can access will also increase. A study by Accenture stated that almost 78 percent of insurance customers are willing to share their personal information with insurance companies in return for benefits like cheaper premiums and swifter settlement of claims. As for insurance companies, this data from IoT devices will offer them with insights into potential hazards and risks, calculated on the basis of behaviour. This will give the insurance companies hard evidence to support claims, prevent claims and decide premium amounts.
