By now, there is no denying the fact that the Internet of Things, or IoT technology, in short, is going to revitalize almost all types of niches we currently have on planet Earth. Some of them impact our lives indirectly, but some quite directly as well. One of those industries is the “Insurance” niche. IoT has a lot to offer for the insurance industry based on its core feature: providing a framework to connect a variety of electronic devices that are both microscopic and gigantic in size. But there is also another feature which makes IoT an ideal technology for the insurance providers, and that feature is its ability to empower two devices to communicate with each while keeping their anonymity and effectiveness intact. This ability of IoT technology is often known as M2M (Machine-to-Machine) communication. But how will you, and the insurance providers, will be affected by this revolutionary change IoT promises to bring in the insurance industry? Let’s find out!
Why IoT Matters To Insurance Firms?
Honestly speaking, insurance firms have a lot to gain from the IoT technology. Because the IoT-powered devices come in all shapes and sizes, and they have the ability to effectively transfer data from each connected device, they are capable of providing highly legit real-time current information to the insurance providers. This current data will go on to help to settle the claims and providing great legal assistance during the overall insurance claiming procedure. But if you are looking for a more in-depth answer as to how this will be done via IoT technology usage, let me assist you in the most “layman” terms so that you may easily understand the technical jargon.
Some pieces of modern technological accomplishments like the wearable tech devices, sensors, and RFID chips can directly assist an insurance company in settling claims. Wearable tech contains a variety of devices such as smart tags, smart wristbands (used for health monitoring), and another type of specific product series known as “Fit Tech.” Fit Tech is a term given to those specific web-enabled devices that are used in health monitoring and fitness. These devices can help insurance companies dealing in the healthcare industries, as they provide real-time data regarding the person’s health. For example, insurance companies scrutinizing a claim for wrongful death or an injury can get help in knowing about the crucial health condition of the affected person at the time of the incident.
Similarly, IoT-powered sensors will also play a huge part in helping insurance companies settling up location-based, automotive, and cargo-based claims legitimately and fairly. IoT sensors are tiny chips that can be fitted to, or placed in, on any physical object. These sensors can track a variety of important things such as the speeds, traveled distances, duplication, and conditions in which a physical object is being kept. Well, I believe there is no need for me to further clarify how this data can help an insurance provider in settling up claims pertaining to lost cargo, property damages, or vehicular accidents. Last, but not the least, are the RFID chips. Even though not a direct brainchild of IoT technology, but one can dare enough to say that RFID technology has found a new life with the arrival of IoT on the scene.
According to a very generic definition (unlike the Wikipedia one): RFID (Radio Frequency Identification) is a technology which is utilized to uniquely identify physical objects on which a RFID tag is placed. RFID chips, which is known as a RFID tag more often, has revolutionized the asset tracking industry globally with its unique and wireless identification capability. Now, combined with the IoT power, RFID tags can work as a geographic information system (GIS) to assist more complex type of insurances which includes environmental and climatological claims. So, the possibilities will keep on going if we decide to find more and more applications of IoT for the insurance industry, but these major ones are satisfactory for now. I would like to finish this article on a very good note by Mr. Clovis Lacerda, founder of Parlacom Brazil:
“As soon as the correct set of skills and reliable infrastructures are being made available in huge quantity around the world, I have every good hope that IoT technology will tower above all others that the world has seen thus far.”