IoT disrupting InsurTech: Transforming insurance as we know it.

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TLDR:

• IoT plays a crucial role in InsurTech by enhancing risk assessment and efficiency.
• Key elements include usage-based auto insurance, automation of claims processing, personalization of insurance policies, smart home insurance, and improving interaction with customers.

Key Elements:

IoT is widely used in InsurTech, playing a crucial role of real-time data analytics in modern insurance processes. The fast evolution of information technologies fundamentally transforms the insurance industry. It forces insurers to change traditional workflows and integrate modern technological solutions. This article examines how IoT implementation influences the InsurTech sector and how insurers benefit from it. InsurTech refers to implementing advanced technologies into the insurance industry. The most common of these are the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML). InsurTech enhances risk assessment and improves insurers’ overall efficiency. InsurTech leverages IoT to collect and analyze data from various IoT devices, such as wearables, smart home systems, GPS trackers, etc. The data is then analyzed using AI and ML algorithms. This allows insurers to better identify risks and create optimal pricing models. Moreover, InsurTech can automate brokers’ tasks, such as consulting, sales, and claims processing. This significantly reduces manual work, cuts labor costs, and minimizes delays.

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