The core role of an insurer is to give their customers financial certainty by carrying their financial risk in exchange for a premium. Given the inextricable link between physical risks and financial risks, insurers have always had an interest in their customers mitigating risk in order to minimise financial losses, but until now have not often been in a position to help.
The connected world and specifically The Internet of Things will change this, allowing insurers to become ‘real time risk consultants’. Through ‘big data’ and the increasing prevalence of connected sensors in our lives – the ‘Internet of Things’ – customers and insurers will be able to constantly share insights with each other that simultaneously:
•Provide customers with information or warnings about their risk (you are skipping red lights when you drive, left your front door unlocked this morning, or are developing a potentially dangerous medical condition);
• Help insurers set prices that accurately reflect their customer’s individual risk, reducing the reliance on less granular information, and take account of that risk when it shifts;
• Pre-warn customers and insurers about faults and events likely to cause loss, allowing them to be rectified in advance far more cheaply.
In CityVerve, Manhester’s £15m IoT city demonstrator project, Satsafe is lead partner for road safety and working with consortium partners to develop innoative IoT solutions that enable insurers to mitigate risk in partnership with their customers.
Please contact us for more information.