How IoT Affects an Insurance Sector
The internet of things (IoT) is a sophisticated network of objects embedded with electronics systems that enable them to collect and exchange data. IoT helps to collects and analyzes data about the policy holder which helps insurers customize shields of protection for each customer.
Some auto and health insurers are already offering a new type of insurance like Usage-based insurance (UBI), which uses IoT devices to track client’s activity and offer discounts and rewards for healthy and safe behavior. We found different ways where the insurance industry is using the IoT technology for increase their business.
Internet-Connected Door Bells
Using a motion detector, the door bell records videos of the person who ever approaches the door and that information uploads to the cloud before they ring the door bell. American Family Insurance, which develops the ring door bell system, is providing its home insurances policy holders a $30 discount and the chance to qualify for 5% deduction from their premiums once the device is installed.
Smart Wearable Effects Life insurance
The life insurance companies are easily gathering more accurate data from wearable devices such as fit bit, smart watch, etc. All smart wearable continuously monitoring the health condition of client and send information to the cloud which allows companies to create superior risk assessments and also create better models for future insurance payouts.
Smart Devices Effects Car Insurance
Using IoT technology, the insurer is able to know how the driver is driving on each journey which helps the insurer to price more accurately on the individual basis and it also safe driver with reduce premiums. The US car insurer are used Usage-based Insurance (UBI) to monitor how car insurance customer drive. The firm has also partnered with Zubie, the maker of a device that plugs into your car and can help you to track how well you are driving.
IoT Effects Home Insurance
Home insurance executives also often provide discounts to their clients for using their smart home devices like a home with a connected smoke detector that automatically alerts the fire department which could save insurance companies up to $35,000 the average claim amount for fire damage. Similarly, a sensor that alerts you if there is a water leak in your home before the leakage does any major damage, which also saves the average claim amount.
Internet of things makes the whole process easier. The role of IoT in insurance will continue to grow as insurers become more technical aware about IoT and many more millions of devices connect with the internet. The implementation of IoT technology not only save claim of the insurance company but also it safe from unwanted accidents due to several reasons.