IoT Integration to Transform Pet Insurance Share: ABTO Software Date Published 11 September 2023 Categories Analysis, Blog Reading Time 4-Minute Read An outline of how the integration of Internet of Things (IoT) devices is changing the way pet insurance is managed. The integration of IoT devices can assist pet owners with the monitoring of their pets’ health. It can also help strategic-thinking insurance companies to deliver comprehensive products, as well as rethink some of their existing approaches. IoT data, which optimizes risk assessment, helps create targeted plans, reduces claims, increases profitability, and keeps customers happy, has noticeably revolutionized traditional services. Pet Insurance: Industry Overview Since the COVID-19 pandemic, we have witnessed increasing pet adoption, especially dog and cat adoption. We have also seen increasing veterinary costs, as well as the costs for other complementary treatments — physical therapy, acupuncture, wellness, and dental treatments, among others. These factors had been popularizing pet insurance. Given these recent tendencies, digitalization has become quite important in shaping the sector — whether it’s design, personalization, modernization, or sales, insurance providers have been moving towards digitalization. Business leaders are analyzing customer behavior by identifying important trends and patterns to provide better-tailored services. Here are some trends radically influencing pet insurance: Customer dynamics Pet technology Insurtech innovation — direct-to-customer distribution, business automation, and digitization Pet Insurance: Embracing Digitalization Insurance companies, to keep up with their competitors, have started implementing the following. Artificial intelligence, ML, DL, data analytics Computer vision Insurance companies that mainly prioritize performance, are automating the following. Data and document management Rule and workflow configuration Product rating and pricing Quote generation, policy binding, and pet insurance claim processes IoT Data: Potential Applications Wearable technology is gaining more momentum and providing great opportunities for the insurance sector. One way that business leaders can engage and interact with customers and promote pet safety is through customizable sensor-driven alerts, which, reducing potential claims, can increase overall revenue. Wearable technology (smart collars, activity and location trackers) might optimize the following. Health Monitoring The owner is monitoring his dog’s health status The owner, being alerted about lower activity levels, is taking the dog to the vet office The vet administers necessary corrective actions The vet monitors the progress of the treatment Incident Response The dog gets hurt while being left alone at home The owner, being alerted about some unusual patterns, rushes home to check his dog The dog is taken to the vet office The vet provides timely assistance and averts potential complications Loss prevention — the owner can use live tracking to locate his dog when lost Contextual recommendations — the insurer can use gathered information to provide helpful insights, such as: nearby clinics water and calories intake unusual behavior health hazards. IoT Data Business Benefits Risk Assessment The details from an IoT device can provide helpful insights on behavior, activity levels, and other health signs. Insurance companies can analyze this information to assess the pet’s risk profile. Preventive Care The information from IoT devices can help create reminders about appointments at the veterinary clinic. Insurance companies can utilize this information to identify suspicious patterns (lower activity, higher anxiety) and encourage preventive measures. Tailored Plans The provider can use collected data to offer personalized coverage that meets customer needs. Claims Management The provider might use gathered data to expedite claims management that enables faster approval. Fraud Detection Quality data can help identify potential pet insurance fraud cases that carry reputational and financial damage. If the submitted information doesn’t match collected details, the company might conduct further research. Customer Engagement and Loyalty Better data also helps handle routine pet insurance claims processes and other documentation-related tasks. By leveraging insight-driven decision-making and budget-allocation, as well as performance and productivity, a company can boost customer satisfaction and retention. Summing Up IoT devices can be used for health monitoring, incident response, loss prevention, valuable recommendations, and many other purposes, helping mature pet insurers to reduce potential claims and increase overall revenue. IoT data can optimize risk assessment and preventive care, as well as offer personalization, claim review and processing, fraud detection, and other services, thereby improving customer experience. Take your business operations to a higher level by leveraging IT, especially the Internet of Things integration, cloud services, web and mobile development, and API development.