ICICI Lombard uses IoT to cut risks in commercial covers

Mumbai: Private insurer ICICI Lombard General Insurance has started deploying Internet of Things (IoT) devices to minimise risks in properties that it covers. The areas for deployment of IoT includes tracking risks to marine cargo and ensuring that fire-fighting systems are working.Speaking to TOI, ICICI Lombard MD & CEO Bhargav Dasgupta said, “When it comes to technology, people usually talk about telematics (in auto insurance) and wearables (health insurance). The other area where we are seeing tremendous advantage of technology is using IoT devices in the corporate sector.”IoT devices is a term used to define everyday devices that are incorporated with a chip that enables them to connect to the internet wirelessly. These are not standard computing devices. In marine cargo transit, IoT devices are used to track the temperature in refrigerated containers to keep communicating the range that is maintained. “If frozen food cargo or farm cargo is being transported by road in a refrigerated container and the temperature falls outside the threshold, we can communicate to the driver and ask him to take immediate action,” said Dasgupta. Similarly, in the case of fire safety systems, several customers have agreed to incorporated an internet-connected sensor that ensures that there is healthy water pressure,” said Dasgupta. He added that there is a cost to the devices but buyers like cooperative housing societies have agreed to go for it.In recent years, insurance companies have started using technology on an ongoing basis and not just at the time of underwriting or claims. According to insurers, the constant engagement is good for risk management and reducing claims. It is also seen to improve customer loyalty.According to a report by McKinsey & Co, IoT technologies help insurers determine risk more precisely. Some insurers are using cooperation models like offering integrated products via Google Nest or offering discounts for people who equip their homes with smart devices.