Is Internet of Things transforming customer engagement in insurance?

Earlier this month, British O2 telecom provider became the first mobile operator to offer a car insurance service, a service that uses IoT technology to encourage safe driving.

By installing an IoT device inside the car, the driver’s behaviour is monitored this will indicate how safe they are.  Data is used to calculate insurance premiums. There’s also an incentive for drivers,   those who choose to take the product will get a discount.

As explained by OBC R&D “IoT is reaching maturity in all kinds of organizations, it’s easy to get carried away about all the possible use-cases and opportunities that now exist. But I strongly believe that, amidst the excitement, it is critical that businesses remember the end-customer and the need to bring real benefit. There’s no point driving forward new innovations if they don’t actually make a difference to day to day lives and strengthen a customer’s relationship. There’s a fine line between truly adding value and just being innovative for the sake of it.

What are the opportunities for insurers ?

Insurers are working in a highly competitive environment, facing constant challenge of keeping customers satisfied. 

IoT holds the potential to transform the way they engage with them and deepen their customer relationship with as goal to bring engagement and loyalty to the next level.

As explained by our use case IoT finding experts at objectsConnected.com“In Europe insurers are already giving discounts on premiums when an alarm system is installed, lowering the risk with 3 times to get robbed. Think about the opportunities there are when IoT is becoming a commodity in everyday household”

What is seen amongst our Insurer clients ?

There’s a clear demand from insurers to move towards a more personalized and sophisticated service for the individual segment. Insurers are currently looking into how to calculate more accurate premiums and calculate better risk, awarding their good customers. Things they are asking us, is how can we introduce health monitors, residential sensors, how to do connected cars even if they are over 10y old, how do we insure a learner driver, how to sell the idea , can we do gamification ?

 

Link : https://www.o2.co.uk/shop/services/drive

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