ICICI Lombard uses IoT to reduce risk in commercial hedging

Mumbai: Private insurer ICICI Lombard General Insurance has started deploying Internet of Things (IoT) devices to minimize risk in the properties it covers. IoT deployment areas include tracking risks for ocean freight and ensuring that firefighting systems are working.
Speaking to YOU, Bhargav Dasgupta, CEO of ICICI Lombard, said: “When it comes to technology, people usually talk about telematics (in car insurance) and wearables (health insurance). The other area where we see a huge benefit of technology is in the use of IoT devices in the enterprise sector. »
IoT devices is a term used to define everyday devices that are embedded with a chip that allows them to connect to the internet wirelessly. These are not standard computing devices.
In ocean freight transportation, IoT devices are used to track the temperature in refrigerated containers to continue communicating the maintained range. “If a frozen food cargo or an agricultural cargo is transported by road in a refrigerated container and the temperature falls outside the threshold, we can contact the driver and ask him to take immediate action,” Dasgupta said. Likewise, in the case of fire safety systems, several customers have agreed to incorporate an internet-connected sensor that guarantees healthy water pressure,” Dasgupta said. He added that the devices come at a cost, but buyers like housing co-ops have agreed to go for it.
In recent years, insurance companies have begun to use technology on an ongoing basis and not just at the time of underwriting or claims. According to insurers, constant engagement is good for risk management and loss reduction. It is also considered to improve customer loyalty.
According to a McKinsey & Co report, IoT technologies are helping insurers more accurately determine risk. Some insurers use cooperation models such as offering integrated products through Google Nest or offering discounts to people who equip their homes with smart devices.