IBM has developed an affiliation with The Weather Company. In doing so the technology corporation hopes to save lives. The aim of this alliance is to incorporate enormous amounts of data from the Internet of Things. Furthermore cloud computing with weather forecasting systems. This is to anticipate meteorological circumstances in an efficient manner.
There will be 2.2 billion global forecasting points which can generate more than 10 billion weather forecasts a day. This internet grid will accumulate data from over 100,000 sensors. Also aircraft, as well as smartphones, buildings and motor vehicles.
From a business, health and safety context, this could be an enormous game changer for the insurance industry. This is because WSI, the B2B division of the Weather Company is hoping that the alliance with the IBM internet cloud will allow its data to also incorporate supply chain economics. In addition customer patterns. This will yield important insights into businesses worldwide.
As an example, improved weather prediction analytics will provide more advanced observation of approaching hail storms. People could be warned via the internet about imminent storms before they happen. Insurance companies pay over $1 billion every year in claims for hail damage. Tests have been done with hundreds of thousands of policyholders. It was discovered that a warning that hail could be hitting their cars in the next half an hour, motivated about 50% to take action to protect their vehicles.
Dealerships can be assisted in preventing large scale damage to their businesses. This would be by moving vehicles under cover or following suggestions that facilities increase heat in anticipation of a deep freeze.
Insurance companies will be able to use this technology to deal with claims more efficiently as well as assisting with disaster relief. Text messages could be sent regarding tornadoes. In addition information regarding the geographical positions of relief stations for victims of tornado-hit locations. Clients could send digital photos of household damage to insurance brokers. This would expedite claims procedures.
By the end of 2015, it is anticipated that 1 trillion devices will be connected to the Internet, including many of our cars. By 2019, it is predicted that there will be 5.6 billion smartphones. Our smartphones will become gadgets that connect everyone to everything.
The Internet of Things represents a danger and an opportunity for insurance companies. On the positive side, ingenious insurers will use the potential of the Internet of Things to strengthen their relationships with their clients. They are able to improve pricing, expedite claims processing, decrease fraud and boost risk management. They will attain a better understanding of customers’ needs. In addition be in a position to develop new, improved insurance products to suit individual clients’ current situations. This included offering location-based products and services. They will need to analyse the right data in real-time. They should then focus on customer requirements with up to the minute relevant information.
The potential danger to insurers is that by meticulous pinpointing of insurance risks, the end result could be a reduction in premiums charged to policyholders. This would lead to reduced income and as a result the eventual shrinking of the entire insurance industry.
- Clients are becoming more difficult to please and harder to maintain. They still do not trust the insurance industry.
- Although there is no substitute for insurance itself, clients can and will switch insurers if their preferred interaction points are not available.
- There is the commonly held view that the web is all that matters, but consumers prefer personal interaction, as insurance is a product that relies on personal trust.
Insurers have to provide quality service and reach customers with the right interaction mix.