Data collection is a vital source for modern industries. Insurance businesses that collect and understand new data can better adapt to changing markets.
When it comes to understanding today’s policyholders, data collection helps give context to people’s daily habits and insurance needs.
In order to connect carriers, agents, underwriters and customers together, a robust and flexible P&C insurance solution is required. That’s why WaterStreet Company is focused on delivering best in class solutions with a specialty on third party integrations.
What is the Internet of Things for P&C Insurance?
The Internet of Things (IoT) is a common term for the connections between a variety of devices, ranging from your cell phone, refrigerator, thermostat, home security system or car. These household items are outfitted with technology for data collection and data is automatically sent to cloud storage.
Property and casualty insurance covers the most important items in people’s daily lives. With IoT trends, insurance companies can better collect data to shape offerings, weigh risks and tailor plans to the individual.
Third Party Integrations with IoT
Telematics is one of the most well known areas of IoT in P&C insurance. This field includes collecting telecommunication data relevant to travel. The most common way auto insurance carriers use telematics is through mobile phone applications, allowing a policyholder to turn on their device’s app while driving in order to collect data about their driving habits.
Smart home data is also becoming increasingly prominent for monitoring homes before damage occurs. As homeowners feel more comfortable with updating the home with IoT features, such as with smart locks and temperature control, these positive habits can be communicated to insurance companies for identifying the best policyholders with low risk to insure.
WaterStreet Company’s policy administration system enables third-party integrations for insurance companies to work with any number of new and inventive IoT solutions. These third-party integrations may pull data into your system for a number of reasons to help the policy administration or underwriting process. Here are a few examples of third party integration data:
- View the history of claims on a home.
- View to check criminal records on an individual.
- View location data for identifying risk, such as weather patterns.
- View driving history for accidents and claims.
- View self-service home inspections for a first hand look into the home without needing an inspector.
Challenges for Carriers
The challenge many insurers face today is that they are encumbered with legacy software systems. Without cloud connectivity and a robust API, legacy systems are bootstrapped to dated capabilities and unable to evolve with the company.
These solutions are sometimes built in-house, limited data storage and have dated analytical features as well. End-users of these systems may complain of long wait times on data retrieval and feel unable to reach their job’s full capabilities under the environment’s constraints.
Next-generation, cloud-based insurance software opens new doors for carriers with these experiences. Adopting new technology is a rising requirement to remain competitive, allowing your employees access to the greatest tools for success.
Reach out to WaterStreet Company today to request a consultation and demo.