IoT for Insurance: Delivering proactive protection for the connected consumer

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The insurance industry is fundamentally transforming, as the policyholder becomes more and more connected.  With this new offering from IBM, IoT for Insurance, insurers now have the ability to not only obtain the full 360-degree context of their policyholders, but also to aggregate that data into intelligence needed to protect their policy holders and grow their business. The connected world helps with insurer’s core business models, from expediting claims to improved risk underwriting. Insurers are also inevitably seeing new business models emerging.

With IBM IoT for Insurance, insurers can provide holistic protection personalized to the consumer, therefore shifting the very nature of risk; real time risk assessments are derived, thus influencing the behavior of the policyholder.

Transforming risk assessment models by proactively mitigating risk through real time alerts and analytics

Some say change and disruption is coming, but in reality, it is already here; you as an insurer have the opportunity to build partnerships with policyholders and fundamentally protect the quality of life.

The connected insurance company in action

Meet the Murphy family, Jack and Zara. We all know the Murphys: If something can go wrong, well, it will. Imagine a simple getaway, after a long workweek — they just want to escape for a few days to the beach. Of course they are running late, and they leave in haste for their getaway. In their haste:

  • The garage door is left open and the lights are left on.
  • A recently installed refrigerator is now malfunctioning and a water line is slowly leaking, just enough to cause a lot of damage over a few days.
  • Jack has skipped meals to help expedite his work day, and he is becoming a bit disoriented as his blood sugar level is dropping.

50 miles ahead of them, a major storm is causing a lot of traffic.

Peaceful beach retreat or disaster?

Jack and Zara chose an insurance company that partnered with them to proactively protect them. Their insurance company used IoT devices to provide real time risk assessments, understanding potential issues and preventing them before they ever occurred. The Murphys previously notified their insurance of their upcoming vacation:

  • When their insurer is notified that the garage is open and the Murphys are supposed to be on vacation, the system automatically closesd the garage and puts their home on vacation mode, thus enabling timers for their lights and activating their security system. Jack and Zara receive a notification.
  • A sensor triggers a water intrusion, and again Jack and Zara are notified, as is the insurer. However, before they have a chance to turn around or call, another notification is received that the water has been shut off and a claim is started with someone scheduled upon their return.
  • Jack’s wearable device then detects his low sugar level and the major storms ahead. The Murphys are provided a discount to one of their favorite chain restaurants, and they think it is probably a good time to grab a meal. After their meal, the storm and traffic are still ahead, so the Murphys are provided an alternate route to their destination.

Later that day, Jack and Zara are sitting on the beach, with their toes in the water as the sit on the sand. The Murphys feel safe and protected with their insurance company.

Explore IBM’s IoT for Insurance

IBM IoT for Insurance offers an opportunity for insurers to partner with policyholders with a full 360-degree contextual view of the policyholder. This minimizes risk in real time and lowers the claims payouts for the insurer and provides a deep level of satisfaction to the policyholders.

Insurers are invited to explore the IBM IoT for Insurance services, starting with protection provided for the intelligent home and water leak detection. Shields of protection allow insurers to customize the offering that best fits their needs. Insurers can utilize the data derived from all types of devices as well as external sources, such as weather data, to obtain the information the insurer needs to make the appropriate business decisions and provide the best level of protection possible for their policyholders. With IBM IoT for Insurance, raw data is transformed and aggregated into the intelligence needed to transform your business for the connected consumer.

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