The application of artificial intelligence and the Internet of Things is widely spreading, allowing insurance companies to more actively detect, intervene in and prevent risks. Some wearables already have health pretests and early warnings that are being integrated into the health insurance business. Another example is the use of GPS trackers with sensors to monitor the condition of goods in logistics and control the risk of damage. This situation is a win-win situation. Not only the losses of the policyholders are reduced, but the insurance company’s risk and compensation are reduced.
Why do insurance companies need digital transformation?
The success of insurance companies has always been built on data. Digital transformation and the changes in customer expectations have highlighted the value of data. The survey results show that more than 90% of insurance CBOs believe that data is important in understanding customer preferences (97%) and making corporate risk management decisions (93%). However, only 10% of the respondents who hold the above views said that the data they have obtained is relatively comprehensive, only 39% of the respondents believe that the data related to business risks are complete. In addition, the CEO was also frustrated that internal data sharing could not be achieved, which reflected that the insurance companies were still unable to get through the segments such as marketing and claims.
Impact of IoT on insurance
The Internet of Things will have a significant impact on the financial services industry, especially the insurance industry. As the Internet of Things technology is getting mature, many insurance companies are beginning to take advantage of emerging technologies to reduce costs, optimize channels, and improve services. For example, ship insurance can be adjusted based on the container’s position on the ship and its selected route. The possibility of these businesses being realized is quite high.
Logistics GPS system strengthens risk management
GPS tracker plays a key role in logistics transportation operations. The asset tracking device performs real-time monitoring of logistics vehicles, containers, ships and other road conditions, driver status, and cargo environment monitoring, so that the entire transportation process is visible and traceable. The logistics GPS system is a “cloud + terminal” intelligent tracking and decision-making platform. GPS equipment uploads the data to the cloud platform after data collection, provides the insurance company with cargo vehicle information, driving behavior and other data analysis, effectively strengthens risk management, reduces claims expenses, continuously optimizes claims policy, and strengthen the ability to cope with the disposal of accident risk. These data can bring more accurate user portrait analysis to insurance companies, so that insurance companies can provide users with more personalized services and enhance customer loyalty.
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