8. Internet of Things (IoT) Devices for Risk Monitoring
IoT devices, such as smart home sensors and telematics devices, are having a significant impact on the insurance industry, enabling insurers to monitor risks in real time and respond proactively. By collecting data on property conditions, vehicle performance, and personal behaviors, IoT devices allow insurers to assess risks more accurately and create tailored risk management solutions.
For instance, insurance companies can offer discounted premiums to homeowners who have smart home security systems or adjust auto insurance premiums based on data collected by telematics devices.