3 IoT opportunities for insurers
The Internet of Things (IoT) is changing the world radically and transforming business models across industries. The insurance industry is not an exception to this direction. By adopting the IoT and offering services enabled by IoT devices, insurers will be able to keep up with the current developments of the industry and innovate their business to:
1. Retain customers
The IoT enables insurance companies to become active service partners in their customers’ life - instead of only being present after accidents have happened. IoT devices allow insurers to provide a wide range of services including monitoring of homes and commercial buildings, preventing damages, and providing instant warnings in cases of accidents, e.g. fire, leakages, and break-ins.
The enhanced level of customer engagement facilitated by IoT-led insurance services will increase the level of trust and loyalty towards the insurance company, leading to customer retention. With the data provided by the IoT devices, insurance companies will get extensive knowledge about where damages happen in the buildings of their customers. This knowledge makes it possible to offer tailored discounts if the risk of damages is low, making the services more attractive.
Get to know the IoT devices ideal for insurtech solutions
2. Acquire new customers before competitors
Offering attractive services is not only important in relation to customer retention. It is also vital for acquiring new customers. Insurers using the IoT for value-added services will not only get a step ahead of traditional insurance companies. They will also challenge the great amount of new tech-savvy players who enter the field constantly and pose a great competitive threat in relation to customer acquisition.
The IoT also allows insurance providers to meet the increasing customer expectation to get instant digital transactions when in need.
3. Optimize business profitability
The IoT allows insurance companies to lower their insurance payouts by enabling proactive maintenance of insured items. By detecting accidents early on, IoT devices installed in the buildings of the customers will help prevent costly damages. In this sense, it is possible for insurance companies to optimize their business profitability by reducing their insurance payouts.
Interested in more information about insurtech possibilities? Take a look here
