digital transformation in insurance

digital transformation in insurance

Now let’s head into the important part: how exactly Insurance companies can benefit from adopting IoT solutions?

 

IoT

New revenue sources

Insurance companies get their revenue by charging their customers premiums in exchange for insurance coverage. With this in mind, new services and products can be developed — by analyzing customer data we can get insights on what could be a new product that would have a high demand on the market, provide additional services like predictive maintenance and recommendation of services. IoT could also help insurance companies’ cross-sell to customers. With more data about customers and their behaviors, there may be scope to suggest new customized products, make recommendations for each customer and create a network of partners such as car repair centers or MoT specialists, where repeat businesses and commission opportunities may well be explored.

 

Reduce costs

IoT collected data also allows Insurance companies to save a lot of money by making it possible to develop better fraud detection models with sensor driver decisions that will allow Insurance companies to save billions each year by easily detecting fraudulent claims by analyzing sensor data. Also, a more accurate risk assessment is possible since underwriters will have much more data from each individual customer to make a custom risk analysis. Dynamic Insurance policies will not only protect the Insurance companies by adding penalties for customers’ bad behavior but will also encourage them to be more careful by rewarding the good behavior. Predictive Maintenance and Warning Services will cause billions of dollars of savings every year because changing a potential cause of an accident (for instance a leaking pipe) is much cheaper than repairing all the damages caused by that accident which would eventually turn into a much bigger claim.

 

Improve customer experience and relationship

Here are only two points of contact between the insurer and the customer; first when the terms are agreed, and second during the renewal or cancellation process — unless there is a claim. Insurers have little contact with people they serve and these are often done by automatic emails or phone calls. Limited exposure to the customer over time makes it difficult for insurance companies to build positive relationships and engage customers. The fact that we can have real-time information about the client, allows us to often communicate with the customers by providing new services like warnings, recommendations, creating loyalty programs, and an award system for good behavior. This brings a whole new level of customer experience that will likely reduce the churning rates and allow to be more competitive not only by reducing the premiums price.

 

 Maryam Saeed Dogar

 

For more article, kindly read blogs by visiting at https://ihf12.blogspot.com

For more videos, kindly visit our two YouTube channels:

https://www.youtube.com/@imspakistan7268

https://www.youtube.com/@islamicfinance2538