Transforming Automotive Insurance: The Impact of IoT

Fremont, CA: The automotive insurance industry has relied on established practices for over 70 years, and the time for change has arrived. Customers often face lengthy claims processes, high premiums, and a lack of precision. With the Internet of Things now emerging in the industry, a significant transformation in operations is on the horizon.

IoT devices that have been embedded vehicles can provide real-time information to insurers about driving patterns, breaking the speed limits, rash driving, etc. to determine the risk profiles of drivers. The data can then be used by insurance companies to structure premiums according to drivers’ risk factors. The device can be used to provide insurers and drivers about the state of the mechanical parts, detect failures and even provide speed warnings, greatly reducing the chances of accidents and increasing customer satisfaction at the same time.

Handling claims and risk management will also change, with on-site inspector visits being replaced by digital agents and drones, slowly replacing the need for manual evaluations. It speeds up the approval process while also providing highly accurate reports to the insurer.

IoT devices will also be able to report accidents to insurers, while also forwarding them to the nearest service provider. This will drastically reduce the amount of time roadside assistance and emergency services take to reach the scene. Customers will also be able to monitor the status of the repairs of their vehicles and use that data to estimate the amount of damage accordingly and approximately claim the amount that the insurer will settle.

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