IoT refers to devices that are linked to the internet, and also have the capability to analyze, gather and store data. Smartphones, apps with GPS capabilities, and new home security systems fall under this category and have great implications for the always changing insurance industry.
The internet of things stands to benefit insurers and their consumers alike.
Thus far, two innovations have benefited the home & auto sector:
o Home Security Systems
o Usage-Based Telematics
Home Security Systems
With monitored home security systems, it has never been easier to keep an eye on your home while you are out or on vacation. Home security cameras now provide live footage that is accessible by smartphones 24 hours per day. Smartphones are also able to access water sensors smoke detectors, and carbon monoxide detectors in our homes so that we are immediately alerted in cases of emergency. The relief this provides is enormous. For carriers, the potential for damage in a home claim is far less as customers are able to deal with risks and hazards in a much quicker fashion. Responders get to the scene quickly, effectively minimizing any damage.
UBI devices are effective in tracking data that allows insurance carriers to determine whether or not their clients are safe drivers. They are able to track things like:
Acceleration – Is a driver accelerating too quickly in order to beat a light?
Hard-Braking – Is a driver following the car in front of him/her to closely and then slamming down on the brakes?
Time Of Day – Driving between the hours of 12 am- 4am makes a driver more likely to get into an accident.
Prior to the advent of UBI devices, insurance carriers had to rely on speculative data to determine auto insurance rates, that often did not provide them with exactly the information they required to accurately give quotes.
How To Protect Your Data In An Ever-Changing Technology Landscape
Advents in technology are making it easier for customers to keep their homes safe, and carriers to accurately quote rates. This much is clear. But with technological changes come important best practices for keeping your data safe. Now more than ever, it is crucial to do the following:
o Create complex passwords that you change frequently. Have different ones for each device.
o Update your devices to make sure they are always running on the latest operating systems. The reason for this is that hackers often learn how to crack dated operating systems, but the latest ones pose new challenges for them. Always stay ahead of the curve.
The IoT era is an exciting time for the insurance industry. It will be fascinating to see how these changes affect the market place in years to come.