IoT devices and data are proving to be effective in the insurance industry as they enable platforms to protect the business and consumers’ homes. Only a few IoT providers among insurers have managed to execute successful platforms, while many others still speculate.
The insurance industry has witnessed some of the fastest Internet of Things (IoT) spending growth among all other sectors, adapting to the modern era utilizing artificial intelligence (AI), robotics, and smart home technologies. Companies such as MindHome Insurance, the world’s first property insurer, aim to invest in IoT technologies that enhance the customer experience and safety profile. MindHome has managed to successfully offer insurance protection using IoT.
Few insurance carriers currently have an IoT strategy, collect IoT data, or have dedicated resources in place, even as they recognize the impact this data will have on the industry, according to the 2018 LexisNexis IoT and the State of the Insurance Industry Study. The report indicates that 70 percent of respondents agree that gathering IoT data is important to their organization’s current insurance strategy. However, only 21 percent have an IoT strategy, and 7 percent have the human and technology resources required to use it in decision-making. Furthermore, of those that said they currently collect data from telematics, wearables, connected home and properties, only 5 percent say they use it in their day-to-day analytics,.
Use of IoT smart home via Alexa, Google, and other platforms
The insurance industry has expanded its use of IoT capabilities to collect better data and improve the overall customer experience. MindHome Insurance, for example, uses AI-based algorithms that interpret signals from a consumer’s home and responds in real time with notifications and connected preventative actions. Additionally, IoT connected infrastructure and algorithms allow the business to manage risk and lower premium rates for customers in real time.
Other insurance companies can learn from successful insurers’ use of IoT platforms to benefit the consumer. In the insurance industry, MindHome is both a software and hardware solution that deploys deep learning to monitor the home and prevent disasters through emergency shutoff of utilities. For businesses still pondering how this is actually done, this company makes it happen by being able to scale its IoT platform to deliver it to hundreds of thousands of homes to create the best smart homeowners’ insurance experience for both end-users and providers. For example, if a flood detector senses water, it can trigger service shutoff to prevent or mitigate damage.
By 2020, up to 50 billion connected devices will be generating 194,000 exabytes per month around the world. IoT isn’t disappearing anytime soon. Industries and insurance companies can learn from successful insurers’ IoT platforms and strategies to improve consumer experiences and achieve success with robotics and artificial intelligence. Industries should adapt and use IoT to produce new service and product offerings.
For more on digital transformation in the insurance industry, see Exploring The Future Of Insurance.