Ringsted says . “ As opposed to looking back and aggregating 10 to 20 years of loss history , IoT provides underwriters with real-time exposure information and insights into risks .” Finding ways to mitigate risk is the insurer ’ s stock-in-trade and IoT enables them to do it more creatively and effectively . One such example Ringsted offers is Chubb ’ s fraud prevention measures in Latin America : cargo transported across the continent is equipped with RFID ( radio-frequency identification ) tags upon arrival at a distribution centre and then accurately tracked throughout its journey . These tags
“ IoT sensors provide a new dataset that underwriters didn ’ t have before ”
— Sean Ringsted , Chief Digital Officer , Chubb
provide transparency so that , should the cargo be stolen or illicitly substituted , it can be recovered with greater ease . “ Another example is the underwriting of commercial property ,” he continues . “ Today , Chubb does not explicitly price for meaningful risks like interior water damage , partially due to the lack of available risk data . IoT is changing that .” Ultimately , however , for Ringsted , IoT ’ s place in insurance will be determined by its effect on the customer journey . If the quantitative benefits brought to companies by IoT can be effectively applied to achieve qualitatively better outcomes , the importance of the technology for the next generation of insurtech seems beyond question .
55 insurtechdigital . com