Using IoT Data to Proactively Reduce Risk

As we recently discussed, the amount of data created by the Internet of Things (IoT) is perhaps just as impressive as the capabilities it can create for businesses. A recent study estimates that the amount of data currently produced in the digital universe could fill a stack of 128GB iPad Airs that would reach 2/3 of the way to the moon – that is about 158,000 miles. By 2020, that stack could increase six-fold.

For service delivery companies that are able to harness and analyse that data, there are two powerful areas of market differentiation: proactive delivery and risk reduction.

Proactive vs. Reactive Delivery – Fleet Management Industry

In football, the assertion is that defense wins titles. But in business, relying on reaction will typically only allow you to tread water as competitors outpace you. The ability to identify trends and shape offerings based on those findings is critical to staying ahead of the competition.

The Fleet Management industry is a perfect example. Being able to accurately predict future needs is critical to avoid market stagnation and meet customer requirements. Data extracted from IoT devices, such as trends in miles traveled or deliveries made, allows an organisation to make accurate decisions about its growth and operational efficiency around adding or reducing drivers and vehicles.

With sensors monitoring every aspect of a vehicle’s performance, fleet organisations can use that data to pinpoint trends and make proactive maintenance decisions that could prevent a costlier issue down the road. But even further, fleet managers can gain valuable insight into trends that may impact the life of a vehicle based on weight, route, geography, etc.

Data derived from fleet IoT solutions can also be extended beyond the vehicle itself, and used to learn more about the cargo being hauled. For example, trucks carrying perishable goods can get information on temperature variances and empower fleet companies to make adjustments that ensure optimal conditions and avoid spoilage.

Risk Reduction – Insurance Industry

Perhaps no industry relies on the ability to predict risk more than insurance, and IoT has given insurers previously unmatched clarity around risk. Data-based decisions on events that may occur not only help protect the insurance company’s bottom line, but in some cases, IoT data can reduce risk and prevent problems before they happen.

More insurers are collecting and using data by working proactively with customers to equip their homes with a wide range of IoT-enabled sensors. These connected assets can avert risk by continuously monitoring fixtures such as pipes or water heaters to identify any unusual activity. In the car insurance realm, connected cars can receive alerts to take cover should extreme weather be approaching while driving.

Moving forward, an increasing number of insurers incorporating safe IoT applications into policies will prevent disruptive events, reduce the number of claims, and potentially save lives. And with the data that will be extracted from these applications, insurance companies can further determine home and auto safety trends and reassess business plans based on information that would not have been available otherwise.

IoT data has the potential to proactively deliver services and reduce risk – the key is having the insight to collect it, analyse it and make decisions that differentiate you from competitors. Need help extracting the value of IoT for your business? KORE can help. Learn more here.