Today, no one questions that ‘Internet of Things’ (IoT) is transforming the model of the relationship between consumers and providers. And there is no industry that is not affected. For example, IoT helps the insurance industry to improve their relationships with customers.
In 2016, companies invested 700 billion dollars in IoT (hardware, software or services) worldwide. The retail, health and insurance sectors will be the ones that will make the greatest investment and impact from the IoT technology. It is in these three sectors that IoT will induce the greatest transformation in the business model of companies.
Insurance companies are the ones that will be most affected by the change, and in order to adapt to the new times they will have to promote a profound transformation in their model of relations with their consumers. This is why banks and insurance companies have already reoriented their investment to innovation and technological digitalization projects.
The innovation initiatives that are being implemented in the insurance sector are offering a great opportunity for companies to confront the challenges they are facing.
Insurance companies are taking a big advantage thanks to the new data-driven reality. Today, IoT technology, Big Data and Advanced Analytics offer companies all types of data that provide a more complete and realistic view of their customers.
Understanding the reality of consumers allows insurance companies to empathize with their customers, be more proactive in their communication and improve the services they offer. In short, these benefits provide a direct impact on the reduction of abandonment rates, the reduction of the number of claims and, therefore, on the costs of service provision.
But perhaps, one of the aspects that can generate more expectations in the industry is the possibility of creating new business opportunities.