25 May 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.
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.
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.