For an industry that relies on massive amounts of data to
keep it running, the field of insurance has been somewhat of a slow adapter of
disruptive technologies, such as artificial intelligence. However, insurers are
beginning to see the value added by emerging technology to insurance processes.
The Internet of Things (IoT), in particular, is seen as something that could
change the way insurance is bought, sold, and processed. Below are three
potential applications of IoT to insurance.
1. Customer Service
Personalization. Smart watches are more than just interfaces between a user
and their mobile devices. A FitBit, for example, tracks not just the number of
steps its wearer takes daily; it also calculates the user’s sleeping patterns
and other vital signs. Using this information, an insurer can come up with
personalized policies that consider the potential client’s lifestyle and health
risks. Sensorized cars could also detect their drivers’ driving habits and
could play a key role in determining auto insurance coverage.
2. Fraud Prevention
and Detection. Clients filing their claims could state things on their
claims that aren’t necessarily true. However, wearable technology and mobile
apps could help reduce fraud by providing insurers with accurate information,
such as clients’ activity level and daily habits. A recent case in Denmark
involved a woman who claimed disability insurance payouts but was later
revealed by a fitness app to have been actively participating in sporting
activities that would have been difficult for someone who had her claimed
condition.
3. Claims Processing.
Claims adjusters travel to client sites to inspect damage to property. This
process is often risky and time-consuming. However, houses that are fitted with
sensors could detect damage caused by fire, water, or other factors, even if
such damage is not easily visible. Drones could also inspect roofs and provide
photos to centralized servers that determine the extent of damage caused by
snow or hail.
