IoT in the Insurance Industry

IoT in Insurance Use Cases – In the past, many industries have been reluctant to make use of IoT devices for their operations. However, these developing technologies can bring advantages to many industries. Here we will be discussing how they can benefit the insurance industry.

IoT in Insurance Use Cases:

Smart Homes:

Cameras and other sensors can detect intruders and robberies taking place in the house and inform authorities.
Sensors can detect heat and moisture levels in certain areas of the house to inform of possible water leakage ahead of time, so the problem can be caught early on and be fixed.
Similarly, moisture sensors can be used to detect mold in areas of the house. Any extensive damage can be turned into a large claim to help in repairs.
Smoke detectors and fire alarms can detect fires in the house and inform authorities immediately. This can save money in terms of expensive claims for any damaged or lost items.

Smart Cars:

Smart cars can connect to applications using IoT technology and track the cars’ status. Any problems found can be informed to the driver beforehand to prevent extensive damage down the line.
Drivers’ behavior can be analyzed by considering multiple factors (use of seatbelts, speed monitoring, break wear, etc.). This can help insurers know how safe the driver was in the case of a crash.
False claims can be reduced because the data from the car can be analyzed to find if the driver was negligent of any anomalies in the car. Moreover, the driver’s behavior and the data from the car can be analyzed to find out if a crash was caused on purpose.
A camera can be placed to examine the driver’s facial expressions to detect dizziness or alcohol influence and stop the journey or inform the authorities. This can help prevent accidents and save insurance companies from a false claim due to the driver’s incompetence.
IoT devices can help insurers speed up claim processing in the case of an accident by providing them with data about the car and driver beforehand.

Smart Health:

Smartwatches (Fitbit, Apple Watches, etc.) can track all kinds of data about the user. Including but not limited to their blood pressure, heart rate, and water/calorie intake. This data can help insurers provide better policies to their customers.
Using the data collected by these health devices, insurers can make personalized packages for their customers. The people taking care of their health will be able to save money.
Insurers have a greater understanding of their clients due to the data that is provided to them by IoT devices. This allows them to provide special offers or discounts to their clients which also increases brand loyalty.

IoT devices/applications are connecting the globe like never before. Initially, many industries were reluctant to use these devices in their ecosystems. But now they are starting to see the advantages of using IoT. Now, industries like healthcare, and insurance are using the features of this technology to their advantage. The ability to collect and analyze data in real-time that IoT devices provide is helping insurance companies provide better services to their clients.

Information Courtesy.

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