The Internet of Things (IoT) is expected to be a driving force behind massive changes to the industry.
Technology has been making insurance news for many years, but it is only of late that the changes have been at an exponential rate, as smart devices have become a typical part of the average household, and as the Internet of Things begins its own expansion.
The solutions offered by the IoT can be as simple and practical as they are personalized.
This means that insurance news generated by the IoT is on the cusp of causing a dramatic evolution to the industry as customized and personal service starts to be offered in a way that has never been achieved before. This is accomplished by taking what industry professionals already have and making it even more appealing and useful. After all, insurance companies are already regular collectors of a massive amount of consumer data – including everything from the medical history of a patient to details of a driver’s habits while behind the wheel, and even the various maintenance efforts that homeowners are making to their properties.
By enhancing the quantity and quality of that data, the insurance news could be very promising.
Sensor technology, for example, can help to provide real-time insight into the actual behaviors of policyholders, which causes insurance companies to have to rely less on data based on demographics, so that they can focus on the actual risk presented by an individual customer and adjust costs and spending appropriately. It is precisely in this area that the Internet of Things applies.
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Many auto insurers have already introduced usage based insurance programs that use a wireless device installed into a vehicle in order to track a driver’s actual habits and behaviors, so that their safe driving can provide them with discounts to their premiums. It has also been predicted that various types of wearable technology with trackers enabled could help people to save on the premiums for their health plans because of efforts being made to improve health, such as regular physical activity.
The insurance news that will be caused as a result of the Internet of Things is expected to unroll at an increasingly rapid rate over upcoming years as this tech enters into more components of our everyday lives.