According to Strategy Meets Action (SMA), the value and disruption do not come from the “things” or the technology itself. New, actionable insights can be gleaned from massive amounts of new data being collected and analyzed. Insurers must build strong enterprise-wide data management and analytics capabilities to be in a position to capitalize on these new data sources.
To date, the primary focus has been on leveraging existing data within the enterprise, but this now needs to be extended to consider the data in the connected world. Data flows, types and volumes change dramatically with connected devices.
High Probability of disruption by 2020:
Lower Probability of disruption before 2020:
Which Insurance Sub-specialities might be impacted by these technologies?
Property/Casualty Personal Lines
As progress is made in connected cars and smart homes, the impact on the customer experience is increased. A future of driverless vehicles and fully connected homes could mean that exposures are very limited, to the extent that there is no insurance needed or the manufacturers of the products hold the liability.
Property/Casualty Commercial Lines
IoT can enhance loss control for commercial properties as fleets benefit from the same autonomous vehicle technologies and intelligent transportation options that are available for autos. Some commercial fleets are already deploying significant technologies such as telematics, event data recording, and advanced driver assistance system (ADAS) technologies. One example, workers’ comp, has tremendous opportunities to deploy wearables, smart home, and connected health capabilities to
improve treatment plans and return-to-work options.
Wearables, along with other technologies that manage both wellness and sickness, provide the opportunity for the industry to partner with policyholders by offering wearable health monitoring and fitness devices (discounts for those devices), paired with incentives via gamification technologies and the insurers’ timely advice on healthy living options, creates a win-win scenario.
To learn more, download a complimentary copy of Insurance in the Connected World: Observation on Opportunities and Threats.