IoT is radically transforming the insurance industry. Insurance business can deploy IoT applications and tools to improve profitability and decrease cost. Source: https://customerthink.com/can-iot-boost-insurance-profitability-absolutely-yes-heres-how/

1. Can Insurance Businesses Profit From IoT?
Over the past decade, there has been quite a hype around IoT and how it can be a game-
changer. IoT technology is transforming several industries, namely insurance. When
implemented properly, the adoption of the Internet of Things can be heavily fruitful. As IoT
devices are easy to use and install and capable of offering valuable user data in real-time,
more and more insurance companies are leveraging it. Let’s explore how IoT solutions can
boost profitability in the insurance industry.
Profitable IoT Solutions in Insurance
Before we discuss the ways IoT benefits insurance, let’s explore the various IoT solutions
that insurers can leverage to gain valuable insights.

2. Wearable Devices
A number of insurance businesses have started embracing wearable devices. These
devices enable them to monitor activity levels and reward policyholders in the form of perks,
rewards, discounts, and incentives.
Smart Homes
In the present digital age, the smart home has become the buzzword. IoT-powered smart
home automation is amongst the basic applications in this field. Smart homes are beneficial
for insurance businesses because they minimize damage and lower the number of claims
policyholders file. Owing to the benefits, there are some insurance providers that incentivize
homeowners who use smart home devices like smoke detectors, doorbells, and alarm
systems.
Connected Cars
While driverless cars are still prototypes rather than products, today’s cars can be equipped
with some smart telematics technologies to help you avoid accidents and improve safety. IoT
expands insurance capabilities through in-depth telematics.
IoT Benefits for Insurers
● Personalization: As IoT facilitates data collection, it enables insurers to understand
the needs of their customers and offer them tailored policies that can meet their
individual needs.
● Claims Management: IoT has the power to facilitate and improve claims
management. A number of insurance companies use the data collected from
connected devices to streamline claims management.
● Risk Reduction: Data gathered from IoT solutions can be entered into predictive
analytics models that can help insurance companies take a proactive approach to
risk, instead of a reactive one.
● Lower Costs: As IoT fuels a data-driven framework, it leaves enough room for
automation, which can reduce costs significantly while cutting the daily running
expenses.

3. Wrapping it Up
Even though IoT has gained significant attention in the past few years, its implementation
still remains a challenge due to factors like data security, privacy, ownership, and
management. However, despite the complexities, insurance businesses are leveraging IoT
to reap an array of benefits. Insurance companies should use IoT applications to gain
advantages over their competitors.
Source: https://customerthink.com/can-iot-boost-insurance-profitability-absolutely-
yes-heres-how/