What do you think would happen if instead of dealing with so many claims and losses, the insurance industry would focus on preventing these types of events? Is it profitable and possible today?
Thanks to telemetry and IoT, it is possible!
The insurance industry has been slow to take the step to transform itself, however, it is now easier to see it with the intention of doing so in order to alleviate the contingency we live in and to meet the demands of today’s average policyholder.
What is telemetry?
Telemetría is a remote communication system that allows permite collecting, processing and transmitting information from one electronic device to another. All this is possible thanks to sensors that measure physical or chemical magnitudes such as temperature, vibration, pressure, voltage, speed, time, among others.
Thanks to telemetry and the interconnection between all ioT elements, it is possible for insurance companies to work on claims prevention and will also be able to:
Perform real time monitoring of various values and variables, being able to collect all the metrics and characteristics of an asset in an accurate way, which are are sent to the system operator.
In the same sense, its use allows the optimization of processes and actions on which the correct operation of a business depends.
Fun fact: Did you know that it is estimated that there will be up to one trillion connected devices by 2025?
The avalanche of data that will be collected thanks to thousands of connected devices will make it possible for insurance companies to use it to their advantage to meet a wide range of needs of their policyholders.
3 advantages of telemetry
According to the telemetrik article, they are:
- Real-time information.
- Ability to make good decisions based on measurements and analytics.
- Know in time the events and alarms of processes and assets.
What problems can you solve with telematics?
It is known that in the insurance industry there has been a leakage of data for a long time, which causes a loss of value for the processes of revolution of the same and the impediment to be able to create new products and services for existing customers and those of this more digital age who ask for something more innovative.
On the other hand, we have the increase in claims and their operating cost, whose figures meant claims ratio in 2020 of 59.5% and 66% by 2021.
The culture of loss prevention is just beginning to germinate in some insurance companies, but the truth is that the “normal” thing has been to act when the loss has occurred, instead of seeking methods of prevention.
Curious fact: In the vehicle industry alone, it is possible that telemetry, based on a behavioral evaluation, can reduce 57% of road accidents.
Another curious fact is that this technology is capable of providing early warning of mechanical failures, criminal acts and other ailments that may put policyholders at risk.
At LISA Insurtech we have developed a telemetry solution to avoid data leakage, which allows us to prevent claims in the various lines of business.
Want to know more? Don’t miss our next article where we will explain everything.🤓
Check our services: Lisa Claims: insurance claims management