How the Internet of Things Could Impact the Insurance Industry

internet of things

How the Internet of Things Could Impact the Insurance Industry

If you are wearing a Fitbit, own an Amazon Alexa, or have an AT&T equipped car: you are already participating in The Internet of things.  The Internet of things is a growing network of sensors and connected devices known as IoT. These sensors are used to build new applications and improve their decision-making. There is a lot that Insurance companies can utilize IoT for. The Insurance industry has always been predicated on having detailed data to assess risk. Historically, that information was limited to filling out forms. IoT has the ability to access a plethora of intimate data and could allow insurers to better understand risk and price their policies. Here are four ways that the IoT could impact the insurance industry.

Sensors on Machines

Sensors could pull data from vehicles as well as shipping containers. Relying on sensors and GPS to measure distances traveled, speeds, and the frequency of braking. These sensors can also alert owners in the event of malfunction or breakdown.

Environmental Sensors

These sensors specifically include location-based sensors such as smart thermostats and industrial control systems. Sensors on alarms, drones, and cameras fit into this category. All of these devices are being used for anything from farming equipment to monitor crop health and in retail, residential and industrial sites to generate useful data. Some senors are already being implemented into grocery stores that will ensure proper monitoring of spills and refrigeration.

Biometric Sensors

These sensors are also known as wearables or fit tech. These sensors track health-related metrics such as heart rate or the number of steps taken. In an industrial setting, the sensors could send an alert when workers are lifting improperly or risking injury.

Geographic Information Systems

These sensors provide geophysical, topographical, climatological and hydrological data. These sensors could provide data to help determine the likelihood that an incoming tropical storm might disrupt a major sporting event.

Insurance companies are predicted to seize the capabilities that IoT could provide. However, implementing a IoT strategy is easier said than done. By presenting sensor-based solutions that improve overall operations for the insured, insurers can reduce the total cost of risk. Here at AWS, we monitor the changing tides of the technological world and stay ahead of the game. We are excited to see what the future brings and we welcome the changes with open arms.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.