Examining the applications of Internet of things technology and its acceptance rate in the insurance industry

Document Type : Original Article

Authors

1 Assistant Professor, Department of Management, Faculty of Social and Economic Sciences, AlZahra University, Tehran, Iran

2 Master's degree of Information Technology Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

Abstract

Purpose: The insurance industry is one sector that can be significantly developed by leveraging the capabilities of Internet of Things (IoT) technology. Given the importance of adopting IoT technology and its impact on business growth, as well as the existing gap in understanding IoT applications and the challenges associated with its adoption in the insurance sector, this study aims to identify IoT applications and the obstacles to their implementation in insurance. Furthermore, another objective of this research is to examine the level of awareness among insurance industry employees regarding IoT technology applications and the willingness of insurers to adopt this technology. In this study, based on the Technology Acceptance Model (TAM), perceived usefulness, perceived ease of use, positive attitude toward use, and behavioral intention to use IoT technology in the insurance industry were analyzed and investigated.
Method: In the first stage, a systematic literature review (SLR) was conducted following the PRISMA guidelines (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) to identify Internet of Things (IoT) applications and investigate the challenges associated with its adoption in the insurance industry. In the second stage, two questionnaires were administered. The first questionnaire was designed and implemented to gather expert opinions on the applications and challenges identified in the first stage and was analyzed using the Content Validity Ratio (CVR) method. The second questionnaire, completed by insurance industry employees, was analyzed using Amos software. In the third stage, a clear and comprehensive definition was provided based on the research objectives. In this study, the Technology Acceptance Model (TAM) was contextually employed as the conceptual framework for the research.
Findings: This research identified 17 applications, which include: monitoring and control (user accessibility and identification in various situations using IPv6), monitoring and control of individual health, risk assessment of new drugs, prediction of natural disaster, hazard identification (water scarcity and pollution), hazard identification (emergency conditions in smart homes), provision
of healthcare services in remote and inaccessible areas, acceleration of rescue operations, theft prevention, informed decision-making, customer differentiation, accurate verification of insurance claim, hazard identification (accident probability), fraud detection, insurance product design, accurate pricing, and providing better services.
Additionally, this research identified 13 challenges to IOT technology adoption, which include: lack of trust in Internet of Things (IOT) technology regarding security and privacy, lack of standardization of IOT technology with other infrastructures and application software, weak internet connectivity, cost of IoT technology intallation, lack of an enjoyable experience from using IOT technology, lack of quality services when using IoT technology, lack of support system for problem arising from IoT technology use, insufficient employees training for IoT technology use, difficulty of using IOT technology, perceived lack of usefulness, user incompatibility with IOT technology, lack of employees motivation to adopt IoT technology, and lack fo software and hardware capabilities.
Conclusion: based on this study, in addition to identifing IoT applications and the challenges of adopting this technology in the insurance industry, the level of IoT adoption by insureres was analyzed across various aspects of perceived usefulness and perceived ease of use, which lead to a positive attitude towards the technology. Furthermore, the behavioral intention to use Internet of Things (IOT) technology among insurance industry employees was investigated, with the aim of providing this information to insurance industry managers so they can work to address related issues. onsidering the research background, it can be seen that despite the current global growth of Internet of Things (IOT) technology, less attention has been paid to IoT applications in the insurance industry and the topic of IoT technology adoption in this sector. In the present study, using a systematic literature review method a more comprehensive list of Internet of Things (IOT) applications, including 17 applications in various parts of the insurance industry, was identified. Additionally, a categorization of the identified applications across different type of insurance wase also presented. Alongside the identified applications, the challenges of IoT technology adoption were also investigated, and 13 adoption challenges were identified. Insurance industry managers, by being aware of applicatons identified in this research, can strive towards the development of insurance industry. They can also use the identified callenges in this research to overcome barriers to Internet of Things (IOT) adoption. Furthermore, managers can take necessary action based on the result obtained regarding the level of employees' awareness and their willingness to adopt IOT technology.

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Main Subjects

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Sciences and Techniques of Information Management
Volume 11, Issue 2
July 2025
Pages 133-172

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