It’s estimated that there will be more than 50 billion devices connected to the Internet by 2020* – which far exceeds the number of people on the planet today.
The Internet of Things is already transforming business. Industries such as energy and utilities, manufacturing, automotive and agriculture have already adopted facets of this trend while others including healthcare, retail and insurance are on the cusp.
For the data-dependent auto insurance industry, the Internet of Things is a game changer. For example, data from various sources are used to determine a person’s insurance rates. And the interpretation of this relevant, actionable and real-time data is the true value of IoT to the industry.
Insurance companies that are early adopters of usage-based insurance, or UBI, are reaping the benefits of this shift, as policies more accurately reflect the policy holder’s driving habits.
Insurance companies and consumers alike benefit from the insight gained from data analytics. UBI-centric services have the capability to change driver behavior through heightened self-awareness, so that drivers can become more safety and environmentally conscious.
Low-risk drivers are signing up for UBI policies, with the expectation that they will be rewarded for their good driving behavior.
UBI also allows insurers to add new services that their customers can use. These services include GPS‐based roadside assistance, remote diagnostics alerts, maintenance reminders, distracted-driver alerts, teenage-driver monitoring and coaching, ecological-impact feedback and much more.
The Internet of Things has the potential to completely transform the insurance industry. There’s no denying that UBI is the future for the auto insurance industry. As more and more insurance companies adopt this business model, more organizations and their customers will benefit.
To learn more visit http://www.verizonenterprise.com/industry/insurance/
*source: Ericsson http://www.ericsson.com/res/docs/whitepapers/wp-50-billions.pdf