Insurers urged to adopt IoT technologies

Insurers urged to adopt IoT technologies

Insurers urged to adopt IoT technologies
Insurers urged to adopt IoT technologies

A report published today has found that consumers are demanding that their insurers harness the potential IoT offers to improve services.

Conducted and sponsored by GMC Software, more than 2,000 British adults were asked about their expectations of insurers and how technology can help.

A massive 93 percent said they’d like to see more choice in how they communicate with their insurers, who they believe are failing to make use of digital channels.

According to the research, just 5 percent of the consumers’ insurers use mobile to communicate, yet 19 percent of consumers want them to offer such a service.

It’s also common for consumers to have to share information multiple times. When last making a claim, 61 percent of respondents had to share information more than twice. Technology, they said, could help avoid these problems.

Consumers also want insurers to make use of multiple methods of communication, with a main preference being via email. 71 percent said email should be used, while only 53 percent of insurers are only using it.

While technology can be used to improve communication and overall service, consumers believe there are more possibilities when it’s harnessed – especially IoT. 56 percent want their insurer to use technology such as health monitors or connected cars for more accurate premiums.

Also read: Internet of Things set to disrupt insurance industry, find report

IoT can improve customer service

Mike Davies, VP EMEA North at GMC Software, said: “As we can see, consumers aren’t averse to paying a little more now for a better service that benefits both insurer and consumer.

“By matching their customers’ expectations and making the most of technology, insurers aren’t only helping consumers, they’re helping themselves.

“For instance, using connected devices to provide more accurate premiums means insurers can offer cover at a lower cost and at less risk to themselves. Society’s attitude to technology and communications has changed: the industry needs to change with it.”

Andrew Yeoman, CEO of IoT cloud platform Concirrus, believes more insurers will adopt connected technology over the years and sees a lot of potential.

He told Internet of Business: “My view of IoT’s impact on the future of the insurance industry is simple: in the future there will be two types of insurance providers – those that have fully integrated IoT and those that ‘used to exist’.

“The future clearly belongs to those that innovate, and quickly. There has been much conversation around the impact of telematics, but this is only the beginning and IoT will eventually revolutionise every area of the insurance industry.

“With the ability to harvest and interpret real-time data, the entire process of risk evaluation will be turned on its head and with it the nature of the relationship between insurer and insured.

“With this shift will emerge ethical and moral dilemmas, but at its heart we will see insurers become assurers, take responsibility for the outcomes and provide a truly valuable service to customers.”

Also read: Insurers start cashing in with the Internet of Things

Andrew Yeoman is speaking at our upcoming Internet of Insurance event (June 2016, London), along with representatives from AXA, Allianz, Google, Lloyds, Marsh, Zurich and many others. Click here for more details or to sign-up.