The Internet of Insurance

  • The Internet of Insurance

The Internet of Insurance is a relatively new concept. It is a type of insurance network that is owned by members and has a multitude of benefits. The Internet of Insurance was created by a group of agents, insurance carriers, and advanced technology companies.

This idea was born because the founder realized there was a large problem facing many industries today, in particular, the insurance industry. There are companies that are resistant to change the way their business works in relation to technological advancements in our world, and those who embrace change and technological advancements and want to keep their businesses evolving with our changing world.

Today, most people carry a smartphone, rely on their laptops, and could never live without the Internet and the technology all of these items bring. Technology has dramatically changed our daily lives and the way we go about our daily life. However, there are so many companies that have not grown and changed with these lifestyle changes, and the way insurance companies operate falls into that category.

For instance, insurance companies have disconnected workflow that results in lack of efficiency, which affects customer experience. They also face an issue with insurance pricing for their customers because risk is not digitally determined, which can result in serious pricing inaccuracies. Many people are often underinsured, which can end in significantly higher medicals bills leading to poor health and financial struggles.

Therefore, the Internet of Insurance was born. It creates a solid framework for insurance companies to innovate, modernize, and digitalize their old processes that are inefficient and failing to keep up with modern technological advancements.

  • The Internet of Insurance

The Internet of Insurance can do the following, but is not limited to:

  • A digital risk syndication network
  • A behavioral economics laboratory including an incentive fund governed by an agency and carrier council
  • Open source technology, including standards and data privacy agreements to address GDPR and CCPR compliance

Organization and starting small is the key to proper integration into the company. According to a special Internet of Insurance conference, they suggest beginning at claims and underwriting and then going from there. Companies to work together to brainstorm how they can use all of the data collected by IoT and how they can use that data and information to their benefit. For instance, can the information be used to increase premium growth, eliminate the risk of fraud, help customer loyalty and customer retention, and much more.

Once much of the basic information is collected and understood, creating an action plan and then actually integrating new ideas will make or break the way an insurance company find success with the Internet of Insurance.

In the end, the Internet of Insurance is a new way for insurance companies to seek growth in a quicker and more efficient way than they have been over the last thirty years. Although there is still a lot to learn and figure out, this platform aims at changing the way insurance companies provide coverage to their customers and the way customers receive and use their insurance. We are well on our way to a better insurance industry.