The logistics GPS system combined with Artificial Intelligence (AI) and the Internet of Things (IoT) is revolutionizing the insurance industry. This system enables insurance companies to actively detect, intervene, and prevent risks during the transportation of goods. Wearable health devices and logistics GPS systems with advanced sensors monitor the condition of cargo, reducing damage risk. This innovative approach creates a win-win situation, lowering losses for policyholders and reducing insurance company risks and claims.

Why Insurance Companies Need Digital Transformation

The success of insurance companies has always relied heavily on data. The digital transformation and changing customer expectations have further highlighted the value of data. Surveys reveal that over 90% of insurance Chief Business Officers (CBOs) recognize data’s importance in understanding customer preferences (97%) and in making informed corporate risk management decisions (93%). However, only 10% feel that the data they have is comprehensive, and just 39% believe that risk-related data is complete. CEOs also face challenges with internal data sharing, indicating that companies have yet to fully integrate marketing, claims, and other segments.

The Impact of IoT on Insurance

IoT is significantly influencing financial services, especially insurance. As IoT technologies mature, insurers are adopting emerging solutions to reduce costs, optimize channels, and improve customer service. For instance, ship insurance premiums can be adjusted dynamically based on container location and selected routes. The potential for such IoT-driven business models is growing rapidly.

How Logistics GPS Systems Strengthen Risk Management

GPS trackers play a vital role in logistics operations. These asset tracking devices provide real-time monitoring of vehicles, containers, ships, driver status, and cargo environments. The entire transportation process becomes visible and traceable through a “cloud + terminal” intelligent tracking and decision-making platform. Data collected by GPS devices is uploaded to cloud platforms, providing insurers with detailed cargo vehicle information and driver behavior analytics.

This data empowers insurance companies to strengthen risk management, reduce claim expenses, optimize claims policies, and improve accident risk response. It also enables insurers to build more accurate customer profiles, deliver personalized services, and enhance customer loyalty.

For more information about how JimiIoT’s smart logistics GPS solutions apply in the insurance industry, please contact us.