The application of smart devices fits in with the rise of the Internet of Things (IoT), where devices are used to connect up appliances and to collect data. One sector that has begun to use such technology are insurtech pioneers.
Examples include the use of telematics, sensors and IoT devices, where the data is used by insurance brokers and carriers. For example, companies like Cocoon have applied smart technology and home sensors, for businesses and consumers, leading to reductions in the cost of home or business insurance.
One offering from Cocoon is smart alarm system. Cocoon’s e multi-room detection system, called Subsound, can sense unusual sounds in a home or premises. The detector is sufficiently sensitive to unusual sounds throughput several rooms, not just the room it is located in.
Data is collected and then analyzed by an artificial intelligence system. The device detects unwanted activity and learns which sounds are normal and which are atypical and require an alert to be activated (which is a signal sent to a smartphone). By fitting the device, Cocoon, partnering with major insurance companies like Zurich Insurance Group Ltd., leads to lower insurance costs to consumers.
Other similar devices are Roost, August Home and Mobileye, both of which provide smarter alarms and advanced warning systems for homes and for vehicles. Mobileye, for example, develops vision-based advanced driver-assistance systems (ADAS) providing warnings for collision prevention and mitigation.
With healthcare insurance, lower costs are provided through consumers willing to use devices, like fitness trackers, smart watches or similar wearable health technology. For the U.S. market, TechCrunch has written about Better, a startup that uses technology to help to lower medical bills.
Insurance companies are also using drones to help with insurance claims and for risk management purposes. Drones can replace insurance inspector site visits, the Financial Brand reports, leading to a speedier claims process.
The greater availability of technology has seen a proliferation of startup insurance companies, seeking to offer more competitive rates through the application of smart devices, a trend which signals greater disruption of the insurance sector.