How Telematics, IoT Are Revolutionizing Insurance
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Posted On: 05/07/2024 5:11:21 PM
How Telematics, IoT Are Revolutionizing Insurance
Years of consistent technological innovations have brought the global insurance industry on the verge of revolutionary change. Like many other decades-old industries, the insurance segment is long used to using traditional policy pricing and risk-assessment models that have now become the norm among insurance professionals.
However, technology doesn’t remain static and has advanced a great deal since the insurance industry first came up with the models it now uses to assess client risk and price insurance policies. Cutting-edge digital tools such as telematics and the Internet of Things (IoT) now have the potential to disrupt the insurance industry by helping insurers better understand their customers’ assets and behaviors.
These tools could revolutionize how players in the insurance space evaluate policyholder risk and create insurance packages. Mordor Intelligence reports that the IoT insurance market has experienced major growth in recent months and is expected to grow even further, from a valuation of $49.40 billion this year to a whopping $76.73 billion before the end of the decade. This market’s growth has mostly been fueled by increased innovative insurance model adoption and the insurance sector’s recent expansion.
Furthermore, the increased use of Internet of Things technologies for risk and premium-cost reduction efforts has contributed to the IoT insurance market’s expansion. Many insurance market players are now looking to incorporate IoT as well as telematics into their operations to enjoy potential reductions in premium and risk costs. Paul Middle, Sentiance vice president of insurance-global, says both technologies could potentially act as catalysts that help educate policyholders and make them more content.
Middle is one of several insurance industry experts who took part in the Professional InsurTech Certificate at FinTech Global Academy, where they discussed how IoT and telematics could potentially revolutionize insurance. Presenters also provided expert opinions on the opportunities as well as challenges that will be involved in incorporating the technology to insurance.
According to Middle, the insurance sector’s survival is dependent on customer demand. To encourage customers to buy their products, Middle says companies in the sector can deploy novel products such as low mileage telematics, which may be more relevant to customer needs. On the insurers’ side, the technology also allows companies in the insurance space to better analyze the risks they choose to underwrite, Middle explains, making their risk-management efforts much more efficient and effective. It could also lead to insurers developing models with fairer pricing but boosting their data collection capabilities and allowing them to set prices based on customers’ personal or commercial risk.
As entities such as FingerMotion Inc. (NASDAQ: FNGR) continue to bring innovative insurance technology products onto the market, there is likely to be more major advancements in the way insurers serve their clients.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
Years of consistent technological innovations have brought the global insurance industry on the verge of revolutionary change. Like many other decades-old industries, the insurance segment is long used to using traditional policy pricing and risk-assessment models that have now become the norm among insurance professionals.
However, technology doesn’t remain static and has advanced a great deal since the insurance industry first came up with the models it now uses to assess client risk and price insurance policies. Cutting-edge digital tools such as telematics and the Internet of Things (IoT) now have the potential to disrupt the insurance industry by helping insurers better understand their customers’ assets and behaviors.
These tools could revolutionize how players in the insurance space evaluate policyholder risk and create insurance packages. Mordor Intelligence reports that the IoT insurance market has experienced major growth in recent months and is expected to grow even further, from a valuation of $49.40 billion this year to a whopping $76.73 billion before the end of the decade. This market’s growth has mostly been fueled by increased innovative insurance model adoption and the insurance sector’s recent expansion.
Furthermore, the increased use of Internet of Things technologies for risk and premium-cost reduction efforts has contributed to the IoT insurance market’s expansion. Many insurance market players are now looking to incorporate IoT as well as telematics into their operations to enjoy potential reductions in premium and risk costs. Paul Middle, Sentiance vice president of insurance-global, says both technologies could potentially act as catalysts that help educate policyholders and make them more content.
Middle is one of several insurance industry experts who took part in the Professional InsurTech Certificate at FinTech Global Academy, where they discussed how IoT and telematics could potentially revolutionize insurance. Presenters also provided expert opinions on the opportunities as well as challenges that will be involved in incorporating the technology to insurance.
According to Middle, the insurance sector’s survival is dependent on customer demand. To encourage customers to buy their products, Middle says companies in the sector can deploy novel products such as low mileage telematics, which may be more relevant to customer needs. On the insurers’ side, the technology also allows companies in the insurance space to better analyze the risks they choose to underwrite, Middle explains, making their risk-management efforts much more efficient and effective. It could also lead to insurers developing models with fairer pricing but boosting their data collection capabilities and allowing them to set prices based on customers’ personal or commercial risk.
As entities such as FingerMotion Inc. (NASDAQ: FNGR) continue to bring innovative insurance technology products onto the market, there is likely to be more major advancements in the way insurers serve their clients.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
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