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

Purpose: The insurance industry is one of the sectors that can develop using the capabilities of the Internet of Things (IOT) technology. Considering the importance of employing IOT technology and its impact on business development, and the existing gap in a proper understanding of IOT applications and the challenges of its adoption in the insurance industry, this study aims to identify the applications and adoption challenges of IOT in the insurance sector. Another objective of this research is to assess the awareness of insurance industry employees regarding IOT applications and the willingness of insurers to adopt Internet of Things (IOT) technology. This study analyzes and examines perceived usefulness, perceived ease of use, positive attitude towards usage, and behavioral intention to use IOT technology in the insurance industry based on the Technology Acceptance Model (TAM).

Method: In the first stage, a systematic literature review (SLR) based on PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) methodology was conducted to identify Internet of Things (IOT) applications and assess the challenges of its adoption in the insurance industry. In the second stage, two questionnaires were administered. The first questionnaire, designed to gather expert opinions on the applications and challenges identified in the first stage, 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. The Technology Acceptance Model (TAM) was employed as the theoretical framework for this study.

Findings: This study identified 17 applications of Internet of Things (IOT), including monitoring and control (user access and identification in various situations using IPv6), health monitoring, risk assessment of new drugs, natural disaster prediction, risk identification (water scarcity and contamination), risk identification (emergency conditions in smart homes), providing healthcare services in remote and inaccessible areas, accelerating rescue operations, theft prevention, informed decision-making, customer differentiation, accurate insurance claim assessment, risk identification (accident probability), fraud detection, insurance product design, precise pricing, and better service delivery.

Additionally, 13 challenges of IOT adoption were identified, including lack of trust in Internet of Things (IOT) technology regarding security and privacy, lack of standardization of IOT technology with other infrastructures and software applications, weak internet connectivity, high installation costs, lack of enjoyable experience using IOT technology, poor quality of services, absence of support systems to resolve issues, insufficient training for employees, difficulty in using IOT technology, perceived lack of usefulness, user incompatibility with IOT technology, lack of motivation among employees, and insufficient software and hardware capabilities.

Conclusion: This study not only identifies the applications and challenges of Internet of Things (IOT) adoption in the insurance industry but also analyzes insurers' acceptance of Internet of Things (IOT) technology in terms of perceived usefulness and perceived ease of use, which leads to a positive attitude towards the technology. Additionally, the behavioral intention to use Internet of Things (IOT) technology among insurance industry employees was examined to provide insights for insurance managers to address these challenges. Despite the global growth of Internet of Things (IOT) technology, there has been limited attention to its applications and adoption in the insurance industry, which this study addresses by providing a comprehensive list of 17 Internet of Things (IOT) applications across various insurance sectors. The study also categorizes these applications within different insurance types and examines 13 identified adoption challenges. Insurance industry managers can utilize these insights to enhance the industry and overcome the barriers to Internet of Things (IOT) adoption. Furthermore, based on the findings regarding employees' awareness and willingness to adopt IOT technology, managers can take necessary actions.