Blockchain, IoT, AI and ML are just some of the tech that is revolutionizing the insurance industry. Also, each of them is the most trendy tech in this decade. But what is the role of the insurtech in this? We will try to figure out the answer in this blog series. In this part, we will talk about the internet of things!
The days of just a piece of paper and a promise are gone for the insurance business. Now technology is affecting every sector. The technology behind Insurtech is making this change possible. InsurTech has been at the center of this transformation, noticeably in home insurance. Home insurance is not a one size fits all, and smart home technology consistently provides customers with added value. Also, it's providing customers insight about their homes.
Improving efficiencies is a key focus in the InsurTech. Efficiency is extremely important in insurance operations. Therefore, through the Internet of Things, InsurTech firms can provide personalized communication, reduced risk, and improved customer experience. This increases efficiency and provides a better user experience.
People can buy IoT devices from e-commerce platforms such as Amazon. The accessibility of IoT devices increases its use even further. The adoption of IoT by home security systems and InsurTech companies has resulted in smarter home security systems. Sensors and smart alarms have been introduced into the home to help minimize damage caused by an unexpected disaster, such as theft, fire and water damage. This gives customers the ability to take a proactive approach when protecting their homes.
Increased use of IoT allows for reduced costs through increased efficiency and optimization of resources, as well as improved safety through prevention. Additional benefits of integrating IoT within the insurance technology is the ability to determine risks with greater accuracy. Traditionally, insurance companies have relied on indicators such as age, addresses to determine premiums. Through the IoT and network devices, insurers can collect data that is specific to the customers, which ultimately builds better relationships and improves a customer’s overall experience. With this aspect, IoT is very important for insurance technologies.