Insurance companies have traditionally relied on demographic and geographic information to assess coverage rates for customers. Loss has typically been a trailing indicator, rather than a preventative event. IoT is changing this methodology and changing it quickly.
At the Insurance IoT USA Summit, held this year in Chicago, IL, the best of insurance companies were leading, listening and learning in sessions about how IoT innovations are and will transform the industry. SpinDance was there to share our IoT experience and be part of the narrative.
IoT is generating the data necessary to offer insurance customers the most personalized coverage — and rates — possible, while also providing the technology and information for further improvement. That data, which helps drive rates down and margins up, is available to large and small carriers alike, creating the disruptive playing field that is being experienced by many other industries: adapt or die. An estimated 1,400 tech savvy insurance startups are demonstrating an awareness and readiness for the opportunity.
A few examples of IoT in insurance include:
- Usage based auto coverage which collects data on mileage, speed, braking and turning will identify safe drivers regardless of age or gender.
- Home, office, commercial and industrial facilities are equipped with sensors to detect internal and exterior environmental conditions, with two way communications able to respond instantly to smoke,