Connected devices can help insurers improve claims outcomes and prevent risks in the first place—if they can foster digital trust.

For the claims function, the Internet of Things (IoT) presents an enormous opportunity to improve claims outcomes and act as daily risk coach. Connected devices help insurers to strengthen customer relationships through more frequent, day-to-day touchpoints—and in the event of a claim, provide real-time, personalized data to speed up the claims process.

generate business value of $100 trillion by 2025, according to Accenture research

However, Accenture research found that from 2015 to 2016, the intent to purchase IoT devices only increased by 1 percent. While there may be a few factors at play, digital trust is certainly one of them. Namely, customers may not yet trust connected technology, or at the very least, don’t perceive the benefits to be worth the exchange of personal data. Furthermore, news reports of smart televisions that spy on you or voice assistants that respond to commands that can’t be heard by the human ear do little to address customers’ fears.

In short, unless customers feel comfortable sharing their personal data—essentially, inviting connected devices into their homes—insurers will not be able to reap the benefits of the IoT. Increasingly, as insurers shift toward partnerships with connected device companies, that makes it more important than ever to be selective about partners, and to ensure that all parties view digital trust as a corporate value, not an IT project. In next week’s blog post, I’ll discuss digital trust as it pertains to ecosystems and partnerships.

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