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In its latest executive brief, Internet of Things, Wearables, and Insurance Customer Experience, Novarica VPs Tom Benton and Chuck Ruzicka take a look at the landscape around next generation technologies in insurance. “The future of IoT and wearables is arriving for insurers,” the analysts say. “While IoT and wearable device applications are mostly experimental so far, insurers can prepare now for the likely changes in consumer behavior that these devices will bring.” Following are some of the areas in which insurers are already experimenting:
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1. Robo-Advisors

This is technology that can take inputs on consumer needs and conditions then make recommendations for product selection, Novarica says. “In insurance, the likely use of robo-advisors will be as a tool for insurance agents and distribution for pre-sales followed by agent interaction to complete the sales process,” they predict.
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2. Continuous Underwriting

“Coverage needs, risk, and pricing are traditionally determined only at time of sale for most life insurance products, but the ability to review the policy conditions on request, at intervals, or upon life events could provide a more comprehensive lifetime approach to life protection products,” Novarica writes.
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3. Proactive Claims Processing

Cycle time for P&C insurers can be decreased through devices and algorithms to proactively diagnose problems and report damage instantly, “in some cases scheduling repairs or even delivering parts for repairs at first notice of loss,” Novarica says.
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4. Individualized Coverage

“Quantified self” and behavior data helps insurers customize their products at a high level. “The data that will become available can guide innovation in product design and the ability to process applications fo life and related voluntary benefits applications potentially without traditional fluids and medical records review,” Novarica says.
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5. Commercial Applications

These include water-leak sensors for high net-worth individuals, embedded chips in building materials that can feed into claims processes, underwriting processes, or surety processes for commercial or specialty lines.
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6. Drone Applications

These include surveying roof damage and catastrophe sites where human inspection may be dangerous. Use of infrared cameras on drones is enables inspection of walls and equipment for cracks from wind damage to encourage proactive repairs, the companies say.