There
is no question that technology, especially mobile, cloud computing, blockchain and drones, has and will keep on affecting the insurance
industry in the future. I'd like to focus on the Internet of Things
(IoT) and how it will impact the auto insurance industry.
As
you may know, IoT allows non-traditional objects to be connected
through the internet and communicate with each other. This can
already be seen with smart TV's, fridges, and other smart household
devices. It also includes cars, of course, which is where the magic
happens.
Since
these are smart devices that transmit data in real-time, it's a way
to protect your investment by anticipating problems before they even
happen. In the event of any issues, they track, store, and send out
the data to all relevant parties, creating a fool-proof system. The
immediate implications of this technology are to help verify claims
and prevent insurance fraud.
A few examples of new "insurtech" include:
Vehicle tracking
In terms of auto insurance, IoT is a game-changer as now precise data will be instantly available, including mileage, geolocation, driving habits, and trends. A smart vehicle can analyze itself and communicate the data with the owner and the insurer. This way if tires aren't replaced or some mechanical fault is ignored by the owner that potentially causes an accident in the future, that data will be available to the insurance company, claims adjusters and all the relevant parties.
Meteorological data
A vehicle connected to IoT will have all important weather information available to its owner and the insurance company as well. This data can be crucial to determine fault, resolve claims disputes, and help prevent auto-insurance fraud. Often times, the weather is blamed for rear-ending, running red lights due to poor visibility, and so on. A smart vehicle connected to the IoT would eliminate any shadow of a doubt by providing the insurance company with irrefutable evidence of any wrong-doing.
Have
a look at this presentation for more information:-
