Benefits of Remote Monitoring and Control Systems for Insurance Companies and Business Owners
We believe that remote monitoring and control systems offer numerous benefits to both insurance companies and business owners (policyholders). Below is a summary of these benefits:
Benefits for Business Owners (Policyholders):
- Early Detection and Risk Mitigation: Remote monitoring and control systems enable continuous monitoring of critical environmental parameters such as temperature, humidity, gas leaks, water leaks, and the condition of operational equipment. This helps in detecting potential problems and risks early and addressing them before they escalate. Consequently, this reduces the likelihood of production stoppages, equipment and content damage, and worker injuries, and etc.
- Operational Efficiency: These systems contribute to improved resource utilization by ensuring equipment operates within safe standards, reducing wear and tear, and extending the lifespan of assets. Efficient operations lead to fewer breakdowns and lower maintenance costs.
- Enhanced Security: Additional security features can be added to remote monitoring and control systems include such as surveillance cameras, motion detectors, and access control for sensitive areas. These features reduce the risk of theft and vandalism, enhancing the overall security of the business.
Benefits for Insurance Companies:
- Accurate Risk Assessment: Real-time data from remote monitoring and control systems provide precise and updated information about the condition and safety of the insured properties. This data allows for more accurate risk assessments and the development of tailored and competitive insurance plans.
- Increased Profits and Reduced Claims: The systems facilitate early detection and resolution of potential problems, which minimizes the number and severity of claims made by policyholders. This leads to lower costs for insurance companies, improved profitability, and the ability to offer competitive rates.
- Data-Driven Decisions: Continuous data flow and long-term data storage protect insurance companies from fraud and false claims that violate the terms of the insurance contract. The analyzed data helps in identifying common risks and developing better risk management strategies, enabling the offering of customized insurance products.
- Fraud Prevention and Data-Driven Decisions: System reports and long-term data storage protect insurance companies from fraud and false claims that violate the terms of the insurance contract. Additionally, policyholders are required to provide a safe environment to protect assets and property
Facts and Examples:
- Power grid outages and failures cost U.S. businesses $150 billion annually. With the risk of long-term power outages increasing, it’s critical for organizations in every industry to consider the impact of prolonged power loss on their operations (Source: Liberty Mutual Internal and ISO data).
- Weather events such as lightning, hurricanes, and tropical storms have historically posed the greatest threat to the reliability of power grids and critical infrastructure (Source: Department of Energy).
- Water damage is the second-largest non-catastrophic loss driver affecting the commercial property industry (Source: Liberty Mutual Internal and ISO data).
- In 2013, Microsoft experienced a failed software update that caused a significant temperature spike in a data center, leading to 16 hours of downtime for Hotmail and Outlook services (Source: www.sunbirddcim.com).
- In 2015, a Fujitsu data center suffered a major transformer station failure due to a power transmission equipment failure, leading to operational disruptions (Source: www.sunbirddcim.com).
Conclusion:
The implementation of remote monitoring and control systems helps business owners and companies maintain safer and more efficient operations, reducing risks and losses. Insurance companies benefit from these systems by receiving fewer claims and better risk management, allowing them to offer more competitive rates. This symbiotic relationship leads to cost savings for both insurance companies and business owners.
Article Prepared By
Walid Ali.
Founder and Operations Manager, Alashhar Connect
With a distinguished career in IT starting in 1998, Walid Ali holds a degree in Automatic Control Systems Engineering and a master’s degree in Mobile & Distribution Networks. His extensive experience spans various technical and strategic roles, supported by numerous IT certifications. Throughout his career, Walid has led diverse projects across multiple sectors, consistently prioritizing exceptional quality and value.
