Standing in one line with other disruptive technologies[1], IoT keeps on popping up in discussions here and there as one of the overarching trends. With IoT breaking into insurance, the alliance spawned yet another concept – Insurance of Things, which is driving a new era of digital disruption of the insurance markets. Digitization has raised the bar, and it changes the game dramatically.
For years and years, the insurance industry has been known as a technological dinosaur. Fortunately, the most passionate and forward-thinking visionaries saw technologies a tremendous opportunity rather than a threat. Today, the insurers see a massive window of potential coming from IoT.
Why IoT matters
The pioneers in InsurTech have been concentrated mainly on vehicle telematics[2]. Insurers want to create solutions working on quintessential technology, combining telematics, military-grade AI, and photogrammetry to name a few. The application that tackles all the existing challenges of the auto insurance industry and much more – is a proponent of a philosophy of safe driving, where responsible drivers are motivated to become better. During the past year, we have witnessed a growth[3] of IoT products in other sectors as well – services focused on homes, fitness, health, etc.
IoT provides insurance companies with a chance to reduce premiums – the price calculation includes human resource expenses. In the context of auto insurance, operations imply the work of appraisers, managers, insurance commissioners, which has been traditionally added to the insurance costs. IoT soft deals with these tasks and as a result passes the savings on to the customer. The processes are implemented much faster; hence, they are being transformed to a new quality level. The elimination of
