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More The Internet of Things Research
Insurers must embrace the IoT predict-and-prevent model and grow profit margins
The insurance model leaves insurers with the burden of repair and replacement pay-outs—it’s a high-risk industry. Pressure on margins is increasingly making insurance a cut-throat game. Ultimately, some things can’t be helped, such as natural disasters, but as new technologies like the internet of things (IoT) emerge, so do new methods of preventing claims. If insurers hope to protect their profit margins, they must realize that the cost of enabling a predict-and-prevent model using IoT is significantly cheaper than ignoring the inevitable. To do so, insurers must find the right IoT provider—one that can take care of the sensors, platform, and most importantly, the data. All three factors must work in harmony for insurers to fully realize the potential value of IoT.
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