IoT is already transforming automotive insurance. And it’s set to expand to other industries – having a similar impact for home, contents and health insurance. In the future, insurers will be the single touchpoint to monitor and manage customers’ risk – and all this data will feed into a single portal.
Usage-based insurance (UBI) is taking off for cars: analysts expect nearly 50% of the world’s vehicles will be covered by a usage-based policy by 2030. And that’s no surprise given the potential benefits. Customers – particularly younger drivers – get an affordable policy that rewards them for good driving and puts them in control. Insurance used to be an annual process, but with the help of IoT it’s becoming a more flexible, usage-based experience.
IoT in the home doesn’t just mean digital assistants and smart fridges – it’s making homes safer, more secure places. Remote real-time video surveillance can alert homeowners and police to possible break-ins – and provide evidence in the event of vandalism. IoT-enabled temperature sensors provide fast alerts in the event of a fire. And flood detection systems mean leaks can be detected even if there is no-one at home.
All of this reduces risks for insurers, meaning they can offer more competitive cover, tailored policies and lower premiums for homeowners.
Contents insurance can vary wildly – covering anything from jewellery to bikes. And some of these items are at a high risk of being stolen. Discrete IoT devices can be installed in belongings such as TVs or boats so customers can track their location and have a higher chance of recovery. This is enabling insurers to offer more competitive rates without shouldering any additional risk.
Many people already have wearable IoT devices that they use to track their fitness. These can monitor exercise levels, blood pressure and heart rate for example. They’re now increasingly being used by healthcare providers to remotely monitor patients with long term illnesses. The data these devices gather is helping reduce risks for insurers, who have greater scope to tailor policies and can deliver better offerings and services to their customers.
Tracking Fleet Vehicles
Fleet telematics enables car rental and leasing companies to track the whereabouts of their vehicles and ensure they’re being driven with care.
Recovering Stolen Vehicles
Secure Operating Centres use IoT technology and dedicated telematics infrastructure to determine the exact location and speed of the stolen vehicle in real time across 49 countries.
Reducing Road Accidents
NanoDriving uses IoT technology to power its camera-based driver monitoring service. One firm with a fleet of 1,000 vehicles saw accidents drop by half within 12 months.