With a wide range of options available for companies to explore, the Internet of Things [IoT] is gaining popularity and momentum across all industries, including Insurance. IoT has immense opportunity to improve business and related decisions. Today, pretty much everyone and every device is connected and constantly communicating with each other, creating a huge network. While, some of them come with health benefits while others help us stay updated and connected all the time.
Largely people who wanted to keep track of their personal fitness used wearable devices during their initial days, over time; it has now become a part of everyone’s lives. People use them to manage their day-to-day activities, schedules, all the while continuing to incorporate the health factor. And then innovations happened which led the device to analyze, send out messages about a person’s health conditions. Today, brands have come up with wearables that do everything our phones and computers can do, sometimes even better.
On their own, these devices might seem to have limited usage, but when connected with others — devices and systems, their potential is multi-fold. The IoT, when combined with data analytics, enhances the decision making power.
Connecting wearables and insurance industry
These devices include everything from the smart watch, wristband, Google glass, gaming headsets and more. They collect data across aspects such as eating, driving, sleeping, working out, and are communicating with smartphones or computers, sharing the data with third parties like the Insurance companies.
When talking about the life insurance industry and wearables, the applications are primarily around,
- Improving underwriting capabilities,
- Value-add for customers [going beyond insurance coverage] and
- Potential to help improve the customer’s overall health.
The primary advantage of using IoT and wearables with insurance is the utilization of the data captured. The metrics, the research and finally the impact it has on a person’s insurance policy- premium pricing. The devices help monitor daily physical activity, lifestyle habits, current health condition, sleep patterns, and even heart functions.
[ Source: Study done by Strategy Meets Action (SMA), a Boston-based research advisory firm ]
Another study done across the USA has found that nearly 46% of the customer base are willing and ready to pick up and use a wearable device, be it a Fitbit, Apple watch, Jawbone or any other, if it will help monitor their health, keep them in better health thereby reduce their insurance premium amounts.
Over time, there has been an increase in usage of these wearables, especially trackers in the corporate space showing how companies are getting involved in their employee’s health. There are numerous wellness programs to help employees stay in better shape since it all ties back to the corporate insurance policies.
These sensory devices with complete access to networks are the ideal example of what IoT is capable of. Insurance enterprises are slowly but surely adapting this technology into their solutions to manage and retain customers. Insurance enterprises have begun to rethink their business/revenue model as the focus has shifted largely from data to customer centric. While there are still a few challenges and concerns regarding these advanced technology solutions, time will prove how effective they can be.
At Neutrinos, our low code development platform has various technology capabilities such as Machine Learning, IoT, AI and more. We are here to ensure app development is not only made accessible, but easy, affordable for all keen on transforming their insurance business.
To understand how you can adopt these into your business, get in touch with us.