The IoT revolution in insurance has created more opportunities for information collection and sharing, as well as an increased competition based on data-driven insights.
FREMONT, CA: The insurance industry has been adapting to a shifting digital landscape that has changed the roles of agents, companies, and clients. The IoT revolution has created more opportunities for information collection and sharing, plus increased competition based on data-driven insights. This shift is poised to change the industry and disrupt existing relationships between customers, their data, and their insurance providers.
Insurers have gained much using connected technology, especially wearables, which can enable activity-based insurance discounts. Fitness devices can expand insurability to people who actively manage their health. Data from wearable devices can help insurers conduct a risk analysis better. By understanding patterns of healthy behavior, the devices can help improve the users' quality of life and the safety of their surroundings.
The future relationship pf customers and insurers will be directly dependant on the insurer's ability to educate, inform, and engage with their customers. This is an outcome of the implementation of IoT. Changing demographics have profoundly influenced the insurance customer profile. The current generation has different buying expectations than previous generations, as the digitally native consumers use connected devices for anything and everything.
With the availability of IoT devices, customers are now able to research and purchase products, benchmark a brand's services against its competitors, and trust the advice of peers rather than professionals. These smart connected devices will bring the same values and practices to the insurance buying process too. Insurance companies can protect against this obsolescence by strategizing programs that integrate IoT technologies. Insurers must develop robust frameworks that will deliver technology-powered insurance products. While adopting IoT, regulation is a key challenge for insurers. Insurers are to keep a balance between the desire for services and changing consumer expectations while maintaining financial stability and protecting consumer privacy.