IoT plays a crucial role in managing risks in the insurance sector. This helps improve products, pricing, and marketing.
Among the 13 industries surveyed, the insurance sector falls somewhere in the middle in terms of IoT spend. In 2015, insurance companies will spend an average $77.7 million on IoT, and in 2018 this spend will increase to $102.9 million. Almost half of the companies spend 35% of their IoT budget to monitor customers using digital devices. About 33% of the IoT budget is consumed for monitoring products.
49% of the insurance companies who have adopted IoT are using mobile apps to monitor customers’ use of their policies, thus making it the most common IoT tool for insurers. 35% of the companies use IoT to monitor their supply chain. This makes it the second largest IoT application in the industry.
The most important business process improvement realized by insurance companies due to IoT is more customized products, services, and marketing campaigns. This is followed by more profitable product pricing and greater insights for the salesforce on key aspects of company products.
Identifying new business and revenue opportunities and rapidly refining products are the key success factors cited by insurance companies. Determining what data to capture, gathering, processing, and analysing huge amounts of data, and deciding what technologies should be developed internally or externally are the other success factors.