Impact of IoT Enabled Devices on the Connected Home Insurance Market -VI

Links to previous publication is provided below.

Continuation from Part - V

IoT Platform based solution to address technology challenges

As listed in the earlier section (section V), some of the core technological challenges currently faced by the insurers to further penetrate the market & increase their customer base are;

• Data privacy & security (throughout the insurance value-chain)
• Interoperability / Uniform Tech
• Ecosystems & Standard-setting across devices
• Partnering with IoT Platform vendors

To address these industry specific challenges, there are some niche InsurTech start-ups (Technology Enablers) like Purple-Ant and ROC Connect, who offer end-to-end connected home solutions & services on their most advanced & open IoT / AI platforms, that reduces time-to-market and commercial risks for the insurers.

Based on our analysis of the above challenges, here are some of the observations – as to how these technology enablers will resolve those challenges.

How do these Technology Enablers benefit the insurer?

• Tech Enablers like Purple Ant - provides a ready & viable platform ecosystem which otherwise, the insurers need to create from the scratch. These type of IoT enabled / AI driven platforms saves lots of man-effort & cost.
• By supporting diverse IoT sensors manufactured by different IoT device OEMs, insurers need not ask customers to buy or subscribe to a specific device or a device series from a specific sensor manufacturer. Newer customers can be easily onboarded “as an insured” with their existing devices.
• Not just the IoT sensors – but the ever-evolving communication protocols & their versions which are the backbone of sensors like Bluetooth, WiFi, Zigbee, Zwave, LORA, NB-IoT etc. will be the responsibility of the Tech Enablers’ platform to support rather than the insurer.
• As Tech Enablers evolve their platforms by focusing on their products to keep up with latest tech trends, eventually it enables the insurers to focus on their core insurance business viz. innovative products, claim prevention, customer retention, market penetration etc.
• Insurers can tap into the existing vendor network which Tech Enablers have already setup to provide best in class after- sales support.
• Insurers can make intelligent decisions based on the customized risk evaluation solutions offered by Tech Enablers, e.g., real-time data analysis of customer behaviour to predict risk/claim.
• Claim or loss prevention will increase customer’s confidence in the insurer & hence increased customer retention.

How does the Tech Enabler benefit the end-customer?

• By taking a proactive approach to preventing loss from perils like water leakage, fire & theft - customers not only avoid the frustrating experience of replacing personal property in their home but may also qualify for lower insurance premiums.
• Tech Enablers like Purple Ant will clearly present the customers with the options to monetize their data collected by IoT devices installed in their home, which is an USP of this solution and something which isn’t offered in the market right now.
• Works with any existing IoT sensors, so no need to buy or subscribe to new sensors or device series from a new IoT device manufacturer.
• Easily onboard any new sensors / communication protocol without worrying much about the interface / communication protocol issues.
• Interactive and easy to use mobile app for real-time alerts & notifications to monitor from anywhere /anytime.
• Exhaustive dashboard on customer’s mobile app to monitor individual devices be it fire, water damage, pipe burst, theft etc.
• Due to reduced risk / claim costs, customers can expect reduced premiums & discounts.
• Attract & retain millennial customers who are tech savvy & expect information to be accessible in their fingertips.

How do these Tech enabler platforms work?

• ?The platform offered is a subscription-based property monitoring solution that enables its customers (both the insurers & the insureds) to detect, prevent, and track damage of their homes using IoT devices
• IoT Cloud Platform: This SaaS platform is adaptable & extensible to wide variety of commercially available sensors identifying corresponding risks. Upon sensing a threat through these sensors, the platform sends out an alert to homeowner, the insurer & the service vendors to address it immediately
• This SaaS platform will use the latest AI/ML technology available on the Cloud to make the “data-driven decisions” in the real-time to evaluate the risks. Real-time risk reports & dashboards based on the aggregated data will be available to the insurers for further analysis to evaluate the risks trends
• A professional services team or external vendor takes the load out from the insurers to monitor for threats / risk but informing them upon risk detection. Hence insurers need not invest in any additional teams / infrastructure to monitor the real-time risks, so it’s a zero operational overload / cost to the insurers. These operational savings can be passed on to insured as a no-claim bonus or discounted affordable premium
• Mobile App: A very light app on the insured’s mobile is appealing, modern & clean. This mobile app ensures that the customers are notified on any real-time threats along with a simple & easy to understand monitoring dashboards.

Stay tuned to read the final publication of the series on -

• An insight into the business & revenue models of the connected home insurance