Learn more about the ‘it’ factor of IoT in this blog, which simply taps the surface of its many probable insurance applications
Finding new and improved ways to make customer experience better has been a constant in the insurance business. Insurers have been continuously adapting to new technology and weaving them into their business plans to stay effective and profitable. Connected insurance is one such avenue that’s full of potential to take the industry forward by leaps.
What is connected insurance?
Connected insurance is a way for you to digitalize how you engage your customers and how your customers engage with you. Connected insurance has IoT technologies at its core and gets its name from allowing seamless interactions and flow of information within the insurance ecosystem, comprising customers, insurers, agents, and stakeholders from other industries.
Connected insurance can help take your customer experiences up a notch. Here are some ways it can help you in:
1) Know your customer like never before:
The best way to please your customers is by showing that you get them and their needs, and thanks to IoT, this can be easily done with data from all the gadgets and wearables one uses in a day. Important information such as age, gender, driving speed, time, routes frequented, level of activity, and heart rate, when put together give a much clearer picture of your customers and their needs. This will help you assess risk and also assist with the underwriting process.
2) Efficient claim processing:
Being what can be termed the backbone of insurance service, claims is what keep the insurance business alive and impacts both customer satisfaction and insurance company profitability. It’s also a time when your customers need you as an insurer the most and expect immediate responses and assistance. To keep this all-important claim process as quick as possible, insurers can use IoT to accelerate the claim notification time. In most cases, the first notification of loss (FNOL) is done by the customer calling the insurer. This isn’t always possible, especially in cases where there has been trauma. With IoT, for example with car insurance, telemetry automatically sends out alerts to insurers and other emergency response teams when there is a crash. This can be used to trigger an automated claims process in less than a second and with almost no effort from the customer. This will significantly reduce the insurance claims processing time and leave the customer more satisfied.
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3) Risk prevention:
Similar to the instant alerts that make FNOL and claims processing faster, interconnectedness of devices and telematics can help avert risks or reduce damage. Smoke sensors, gas leak sensors can contribute in a big way to such risk prevention mechanisms. Geo trackers can help send out alerts about natural or manmade disasters to customers. This can be used to identify and eliminate a significant proportion of risks. Such risk prevention systems can help reduce claim numbers, damage costs while elevating customer trust and experiences. This can be an offering that brings in revenue as well.
4) Subscription model:
The data that’s integrated and made readily available in real-time by IoT technologies offer some unique and never-seen level of insights into customer needs. A variety of service-based businesses are moving towards the subscription model and this pay-as-per-need way of business can be offered by insurers as well. The data from these connected devices can help give tailor-made policies for your customers.
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