This Is How IOT Will Impact The Insurance Claims
This Is How IOT Will Impact The Insurance Claims: Insurance is as old as trading itself. It can be dated back to the time when the Chinese merchants boarded their cargo on different ships, ensuring them that in case if a ship is destroyed most of their stock will be safe.
Although, the fundamentals of this old monetary tool have not changed much, there have been major changes due to the influence of Internet of Things (IoT). People are using smartphone, tablets and other gadgets that make their everyday lives fast paced to compete with the fast life of today. Just like everything else, people want their insurers to move on and adopt speedy methods.
People are getting frustrated with insurance claims taking weeks or even months. IOT will impact the insurance claims process with the use of enormous data flow from different gadgets. It will help insurance companies and customers to calculate possible gains and minimize losses.
Automotive Insurance
Consider you own a car and want it insured. If you go to an insurance company that uses IOT, you may ask them to record your driving data, i.e., style, habits, routes, etc.
It will help because when abnormal behavior is observed, the insurance company will be alerted by the IOT technology. Better yet, you may be able to grasp a handsome discount based on your good driving habits.
Home Insurance
A house is considered to be an average person’s most significant investment. Considering this, it is easily concluded that a homeowner would want insurance for it so that major financial pitfalls can be avoided as much as possible.
You never know when the bad times hit you. A natural catastrophe can come out of nowhere, and before you know it, you are doomed. It can be a significant problem for you and the insurance company.
With IOT, you can have sensors connected that can compute the data provided by the environment and let you know about a potential hazard beforehand. It can save lives and prevent unwanted financial and mental pressure.
Health Insurance
Usually, people can be categorized into two classes: those who look after their physical health and people who don’t. Sadly, the truth is that no matter what, everyone has to pay the same for the premium health insurance.
With the revolutionary technology of Internet of things (IoT), this can be avoided. Everyday health prone apps such as running apps are being made. With the help of all the data accumulated by such apps, the two types of people (healthy and non-healthy) can easily be distinguished.
With the provided data, you could get a discount on the health insurance package based on your statistics that show your healthy lifestyle.
Verdict
IOT will impact the insurance claims process because the lengthy paperwork and necessary documentation could be avoided altogether. Such hectic paperwork will be replaced by factual data from mobile phone apps and environmental sensors.
Such authentic personal information would help add a customized touch to the insurance packages which would be a major game changer in the insurance industry.
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