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Writer's pictureMeirav Peleg Landau

Building a Safer Future: How Prevention is Revolutionizing the Insurance Industry

Updated: Jan 23


MPL Innovation work

As the saying goes, prevention is better than cure. This is especially true in the world of insurance, where companies are increasingly investing in measures to reduce risk and avoid losses. Instead of solely focusing on recovering from unexpected events, insurers are turning to technology and preventative measures to keep customers and their properties safe.


Insurance companies are starting to realize that prevention is key, and they're investing in ways to reduce risk and avoid losses. By shifting the focus to prevention, insurers and customers can work together to establish a partnership that benefits everyone. Customers who take proactive measures can enjoy lower premiums and avoid the hassle of filing claims and waiting for reimbursement.


One way insurers are encouraging prevention is through technology implementation. For example, homeowners can receive discounts for installing smart home technology that can detect hazards like leaks and fires before they cause damage. Similarly, car insurance companies can offer discounts to drivers with advanced safety features like automatic emergency braking.


But it's not just homes and cars. Buildings in colder climates can now be equipped with sensors that notify owners and insurers when indoor temperatures drop to a dangerous level, potentially causing pipes to freeze. Even workers' clothing and machines can incorporate sensors to prevent workplace injuries by detecting when a worker moves out of a designated safe zone.


The next step for insurers is to fully embrace these technologies and encourage customer adoption.


We believe that in order to fully embrace the shift towards prevention and risk mitigation, insurance companies need to assess the external landscape and become knowledgeable about the latest technologies available. There is no one-size-fits-all approach, and each company should adopt a strategy based on its current state and business line. Before partnering with a specific technology, insurers should understand the external landscape and which technologies are really out there. Once they have a clear view of the current landscape, they can move forward and partner with the most suitable tech for their current state, geography, infrastructure, and tech stack.





prevention in insurance

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