Rising Adoption of IoT Products among Companies and Their Huge Benefits Have Created Immense Opportunities for the IoT Insurance Industry

Over the last decade, most insurance organizations have started focusing on consolidated customization services, which has amplified the adoption of IoT products across the world.

Keeping in tab with an Insurance Industry report, twenty percent of the life reinsurance companies were either directing, pointing, or setting out IoT initiatives. As per the study led by Lloyd’s, UK-based insurance UK-based insurance leader, Internet of Things will take along a plethora of perks to the insurance sector, such as escaping avertible losses, pick up patterns and behaviors, comprehending the risk factors, detection of scam, supporting proactive monitoring, and so on. As stated by Forbes, IoT comes with the potential to aid insurance companies by dipping the cost of the claims process by at least thirty percent, when IoT-enabled expedients can also reduce premiums by twenty five percent.

DigiLocker, for example, have helped India's insurance industry to proliferate faster, remodeling the very future of the concept of insurance. As per a number of surveys conducted in this regard, insurance technology in the country is expected to develop even more in the next couple of years. Digitization has abetted the insurance sector of India to record a prominent seventeen percent growth in April-May last year compared to nine percent in the financial year of 2020-21.

According to Allied Market Research, the global IoT insurance market is projected to cite a whopping CAGR from 2020 to 2027. Automobile companies, in the last few years, have been expanding their reach with a steady stance toward connected vehicles and insurance telematics across the world. Insurance brokerage companies are also seen to promote automotive that are IoT-enabled, since it offers the much-required safety. IIHS, the famous US-based organization evaluates that an average IoT-driven auto brake would prevent around twenty eight thousand crashes and twelve thousand injuries in the United States.

In addition, in the first quarter of 2019, a prominent name among the auto insurers in Italy, Unipol happened to team up with TrueMotion to utilize data-driven insights from the platform of TrueMotion so as to control its smartphone telematics agendas. This has been accomplished through the BestDriver program by Linear in Italy, which is exclusively designed to facilitate safe driving. In August 2019, on the other hand, LexisNexis Risk Solutions and FCA Italy joined forces to provide European FCA customers with a plethora of custom-built mobility and car insurance services. The services take in insurance policies on the basis of actual vehicle use and car rental solutions.

Covid-19 scenario-

Here, it’s worth stating that the outbreak of the pandemic gave way to rise in adoption of high-end technology among insurance providers to obtain relevant client information for proper administration of claims. IoT technology was seen to facilitate the insurance industry all throughout the global health crisis to securely accumulate patient health evidences through sensors as well as pertinent wearable devices and sensors to carry out Covid-19 insurance services to individuals. Moreover, the majority of insurance provider companies were incorporating IoT technology to bring in usage-based-insurance services for vehicles, which boosted the market growth.

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