Two Steps for Insurer Success in the IoT Space
Although the IoT era has already begun, some insurers are still finding it difficult to adjust, due to their existing platforms. It’s difficult enough to capture and process billions of new data points. Only insurers with a 360-degree view of their customers and complete visibility will be able to reap maximum benefit from the newly gleaned information. Insurers must be able to act on this information by releasing new products and offers quickly to market. By sticking to a strategic plan and paying attention to details, insurers can survive and thrive in the fast-paced world of IoT.
Here are two keys:
Form innovative partnerships with IoT firms
For example, Liberty Mutual partnered with home automation expert, Vivint, to offer Vivint customers savings on auto and home insurance. And Oscar Health partnered with Misfit, a wearable device company – customers get targets for the number of steps to take and can earn up to $240 a year for doing so.
These dynamic partnerships help expand insurers’ potential target markets and strengthen their value propositions and brands.
Offer a personalized and digital customer experience
One of the biggest complaints of Generation Y (also known as “Millennials”) is that the insurance experience hasn’t kept pace with the customer experience offered by almost every other industry in 2016.
The billions of data points generated by IoT mean that P&C/GIs, for example, no longer have to guess how someone will drive based on the profile of the “average driver,” or a demographics table. Sensors and cameras have eliminated the guesswork, so insurers should be offering more accurate premiums and rates, and personalized plans based on the customer’s usual destinations and driving patterns, etc.