Being innovative doesn’t require new technology, new infrastructure, extensive staff training and a large initial outlay. What it does require is a change in thinking. Thinking about how to use technology, which is already out there, already in our clients’ homes, on their phones and on their wrists.
It’s time to introduce the Internet of Things (IoT) into your customer experience, claims processing and general business processes.
What is the Internet of Things?
The Internet of Things comprises the interconnected devices that many people already have in their homes, from Alexa, to dashcams to Fitbits. All these things are gathering untold data about the users, which often are ultimately our clients and can make data collection for claims processes easier, quicker, and more reliable.
How can IoT be used in Insurance?
On a very simplistic level IoT can be used to collect data about clients’ driving behaviour, their health and the level of home security which can be used not only in customising insurance policies but also for verifying claims and generally improving the customer experience. However, there is more to the benefits of IoT than that.
Risk Mitigation - IoT devices such as smart sensors can be used to monitor and collect data on insured properties, vehicles, or individuals. This real-time data can be used for more accurate risk assessments, leading to better underwriting decisions. By analysing IoT data, insurers can identify patterns and trends that help predict potential risks such as early signs of water damage or fire which can help insurance underwriters make better informed decisions.
Usage-Based Insurance – Telematics devices in vehicles can provide data on driving behaviour, including speed, distance, and braking patterns. This can be used to provide personalised usage-based insurance policies taking their specific behaviour into account and reducing risk to the insurers.
Claims Processing - IoT can provide real-time data on incidents which can speed up claims processing as well as providing more accurate data.
Preventative Maintenance – It is possible to use IoT devices to monitor the condition of insured assets such as machinery or buildings which can help with highlighting preventative maintenance opportunities. This can reduce the number of claims due to equipment failures and breakdowns.
Health and Wellness Programmes – With more and more people wearing devices to monitor different aspects of their health it is possible to use this data to offer personalised health insurance plans and incentivise policy holders to adopt healthier behaviours.
Fraud Detection – IoT devices can also be used to identify unusual patterns which could be an indication of fraudulent activities. For example, if a connected home security system reports a break-in, insurers can then cross-verify the claim with other data sources to detect potential fraud.
Customer Engagement – Using IoT data makes it possible to offer incentivised discounts to clients, for example for those who use smart home devices for security and safety. Not only will it reduce risk, but it will also improve customer relations.
Environmental Monitoring - IoT data can monitor environmental conditions and provide early warnings for natural disasters which can be used by insurers to manage risks associated with weather events, as well as promoting proactive risk management.
In many cases the actual hardware is already in place in people’s homes, cars and businesses which means there is limited outlay for your organisation to use this data which is already being collected.
It’s also not necessary to put all these IoT innovations in place at once, and instead you could focus on one aspect of your business that could be improved and start there.
However, it can be difficult to know how to get started, which is where Camelot Marketplace can help. We can put you in touch with people who have already introduced IoT into their business practices.
Camelot ensures all our members are all C-suite level executives with years of experience within the insurance business meaning they will be able to provide you with exactly the support and guidance you and your business need. For more information speak to a member of the Camelot Marketplace team today.