Trending Digital Disruptions in Insurance Industry
Over the past couple of years, prevalent use of IoT has become an integral part of Insurance industry operations and practices. It is not merely about robust and rapid processing that the Internet of Things (IoT) tools render. Insurance companies are bowled over by the effective, efficient economic, and rapid ways IoTs facilitate them to partner, as well as hugely expand their business opportunities.
In terms of operations, insurance enterprises have traditionally been using IoT capabilities in 3 main areas, viz., claims processing, Underwritings as well as for interactions with customers. The changing scenario however clearly displays the growing popularity of IoTs such as connected devices, sensors, wearables etc. being applied for Insurance usage. Particularly post COVID-19, Insurance experts feel, IoT devices as well as related digital solutions are here to stay deeply grounded.
This blog looks at the outstanding revenue impacts and profitable effects of IoT tools, though to have appeared recently in practice in the insurance domain. Both service providers as well as customers within insurance, are naturally inclined to display innovative trends when it comes to technology usage.
- Paper-based Claims processing are slowly being replaced by mobile apps. Customers have the comfort of submitting their claims in a jiffy through mobile-based image captures or video call updates
- For Carriers, IoTs provide accurate means of calculating and determining risks as well as cutting costs. Usage of IoT devices at strategic transaction points across the insurance value chain greatly reduces costs sourced from these points, increasing lifetime value for customers
- IoT usage data greatly augments and drives precision of outputs from data analytics tools being used in insurance operations. Insurers are able to get to the very bottom of their customer requirements thereby increasing precision of underwriting as well as easily spot fraudulent claims
Radical health advantage and risk prevention
Digitally Transforming the quality of individual lives!!!
A recent McKinsey report indicates a whooping usage of over 50 billion IoT devices by the year 2025. With individuals getting more health cognizant, usage of IoTs is bound to increase and is estimated to reach a worth of $61 billion by mid of the upcoming decade. Some of these preferred IoT devices predicted to become favorites among an increasingly health-conscious global population are sports watches (over 22 million sales estimation), wrist bands (over 64 million sales estimation) as well as monitoring devices in a few millions.
When it comes to IoT usage across Insurance transaction points, it is an upbeat win-win situation for everybody involved, the carrier, agents and more so for the customers. The trend is being set for a truly positive digital transformation of sorts across the insurance and allied industries.
The fundamental advantages of increased IoT device usage is in their ability to collect precise, reliable, real-time health data of Individuals. IoTs profoundly transform the way insurers will have access to the most precise, updated customer data, which make a huge difference in reducing risks for enterprises.
Workplace wearables for health and fitness tracking
Employers affiliating with Insurers, a constructive partnering!!!
Over the past couple of decades an increasing number of enterprises are partnering with insurers to track the fitness and health risk levels of their employees across their work timings. Employers providing health tracking IoT wearables to their employees such as Garmin, Fitbit etc. that capture their relevant, updated real-time health data, are becoming quite a norm of late.
- Aspects being targeted by employers include the tremendous incentive in terms of reduced employee costs by way of premium payable for them. Constantly monitoring employee health facilitates employers to optimize on premium amounts payable for employees. Healthier the employee, lower the premium payable by employer
- Such technology arrangements imbibed in the HR policies of enterprises advantage not just in terms of employee health and well-being. It goes a long way in establishing a sense of fellowship, positivity and an involved set of workforces, increasing their retention rates
IoT usage - remarkable takings for insurance providers
- Customized Data Collection: Insurance providers can capture the most updated, real-time data of Customers for providing a hyper-personal experience priorly unheard of in the insurance industry
- Lowering levels of Claims Evaluations: Insurers can leverage IoT to captured updated, real-time severity data on Claims incidents such as incident reasons, time etc
- Avoiding Losses: Such updated real-time data facilitates insurers to greatly reduce the frequency of Claims and possible financial losses due to the severity
- Cost Cutting: It is estimated by statisticians and industry experts that automated tools and IoT usages facilitate claims cost reduction to almost 30%
- Augmented Customer Experiences (CX): Seamless flow of analytical data and information greatly augments customer delight and experience
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