The insurance industry is one of the oldest in the world. Having started more than 5000 years ago, insurance has helped people protect their property from unexpected risks and accidents. However, this industry falls behind when it comes to the adoption of technology. Most insurance firms still use the old ways of processing claims, a procedure which can be quite frustrating for policy holders. In fact, some people are shying away from any form of non-mandatory insurance because they are not sure whether they will be paid in case they make a claim after a risk has occurred. Luckily, IOT has the capability to improve the health insurance industry and help firms get back consumer confidence.
How IOT can Revolutionize the Industry
Improved Communication
IOT allows the communication and interconnectivity of various electronic devices. Instead of filling out forms to make an official claim, policy holders can take pictures of the incident, write down an official claim, and send it to the insurance company through their smartphone. If the insurance company has environmental and biometric sensors, the machines can read the information sent by the policyholder, calculate the amount of damage done and estimate the claim figure.
Better Relationships Between Provider and Policy Holder
Furthermore IOT technology can improve the relationship between the policyholder and the insurance company. Since the devices are interconnected, the insurance agent can know about any changes the client makes on the business and advice him or her on the best policy to choose. Alternatively, IOT technology can also help the insurance company detect any fraud. The machines can help the insurance company know the exact amount that the person paid for healthcare expenses before they reimburse the person for individual coverage HRA. The technology encourages transparency and improves customer experience.
Improved Reimbursement Methods
The old manual way of processing claims is expensive since it involves a lot of processes and authorizations. IOT simplifies the process and makes it less costly for the insurance company. Since the machines automatically analyze the policy holder’s data and claim amount, the money can be given out within the shortest time possible without using a lot of company resources. Since the operational costs reduce for the insurance company, the firm can lower premiums for their clients.
Improved Claims Process
IOT also has the ability to improve the accuracy of insurance claims. These firms tend to lose money from unnecessary claims and misleading data. People that connect their devices to their insurance coverage can get the best services. Furthermore, there are applications that can be used to monitor a person’s health. Combine such information with the person’s coverage information, and you have a clear picture of the person’s health and the most appropriate plan for them.
The adoption of IOT in insurance comes with its limitations. There’s a tendency by most application providers to sell the information of their users to other companies. If the application provider happens to give an insurance company certain information without the policy holder’s information, it can lead to a serious breach of privacy lawsuit. As a result, the move can turn the market against insurance firms and lower policy intake. However, due to an increase awareness to how companies have been selling and sharing our data, there will be stricter guidelines as to how our information will be shared. This is especially true to health insurance because of the sensitivity of the data.
Conclusion
The adoption of IOT in insurance comes with its limitations. There’s a tendency by most application providers to sell the information of their users to other companies. If the application provider happens to give an insurance company certain information without the policy holder’s information, it can lead to a serious breach of privacy lawsuit. As a result, the move can turn the market against insurance firms and lower policy intake. However, due to an increased awareness to how companies have been selling and sharing our data, there will be stricter guidelines as to how our information will be shared. This is especially true for health insurance because of the sensitivity of the data.
Overall, the adoption of IOT technology can greatly improve insurance technology. Once companies figure out a way to use the policy holder’s data without intruding on their privacy, they can increase their sales. IOT helps make the claiming process less costly and fast.