IoT Technology to Improve Workflow Process for Insurance Industries: BI Intelligence

By CIOReview | Thursday, July 9, 2015
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FREMONT, CA:  Internet of Things is next big phenomenon which is geared up to change the way things work in any ecosystem. This unique technology which attaches internet to any device will have remarkable implications in insurance industry within next five years. It will pave way for new business practices, cost-cutting methods and improved techniques for clients assessment reports John Greenough for Business Insider.

BI Intelligence, a research service from Business Insider has examined how IoT is revolutionizing business models, risk management systems and workflow for insurance industries. The report observed that few auto and health insurance companies are offering usage-based-insurance(UBI) also known as pay as you drive or pay how you drive. This vehicle insurance cost depends on type of vehicle used measured against time and place.  UBI allows IoT devices to track client’s safety and behavior and offers discounts or reward points. 

The study analysis the t U.S. present  insurance market sector including- auto, health, life and property insurance through culmination of IoT devices by the insurers. The key highlights are auto insurers in particular are the early adopters of UBI model; health insurers are providing free health trackers for customers to meet daily exercise needs along with methods to minimize cost. Home insurance companies are urging the customers to install devices to alter of potential danger. The IoT based analytics have the ability to predict future disaster events or changes in weather pattern, helping companies to come up with better policies and reduce future damage for its customers.

In addition the research discusses on consumer benefits with implementation of IoT devices. It forecasts how auto insurance company will draw benefits from advancements in car safety devices. It also shares insights on how insurance companies are already using IoT technology and also certain barriers which is preventing the customers to adopt UBI.