According to a recent survey from EY, 36 percent of C-level executives in the insurance industry feel that they could use more data gained from inspection technology to deliver value to their customers. By having access to more data, insurance carriers could rely on real information rather than projections to determine premiums, prevent fraud, and process claims faster.
Despite the benefits of advancements in technology, the insurance industry is still one of the slowest to embrace the IoT. However, with the flood of InsurTech companies entering the market, traditional insurance carriers that fail to incorporate technology into their business models will not be able to compete. In fact, the latest trend is for traditional insurance carriers to partner with InsurTech companies to streamline the insurance process, helping to enhance the customer service experience.
How Insurance Carriers Can Use Data from Technology to Mitigate Risk
IoT data for the property and casualty insurance industry comes in many different formats, from driving habits revealed by onboard diagnostic technology to security habits communicated by smart home devices. Having access to the real data will enable insurance carriers to more accurately assess risk and provide value to their customers as well.
However, with the volume of data available, it can be challenging for insurance carriers to make sense of it all. To be able to successfully digest this data and apply it to underwriting models, insurance carriers must find a way to standardize and rationalize the information.
One thing is for sure–the IoT is not going anywhere anytime soon. Insurance carriers that don’t see opportunities to use technology to put data to good use will not have a competitive edge in the market going forward.
Our team at Insurance Risk Services has nearly 40 years of experience in partnering with property and casualty insurance carriers to provide them with valuable underwriting support. We’ve seen more and more technology make its way into the insurance space over the past few decades, and incorporating the data gained from inspection technology into the underwriting process will allow insurance carriers to make more accurate risk decisions.
Please contact us at Insurance Risk Services to learn more about how we’re using the latest inspection technology to help our clients best determine which risks are worth taking.