Internet of Things Plans and Priorities from Core Systems Vendors: Life & Health

by Juan Mazzini, November 30, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled Internet of Things Plans and Priorities from Core Systems Vendors: Life & Health. The report was written by Juan Mazzini, a senior analyst with Celent’s Insurance practice.

Key Research Questions

 

1

How deep into IoT are insurance core systems vendors??

2

What areas are priorities for investment?

3

How do vendors plan to deliver IoT capabilities

The IoT could change every part of the insurance value chain, but also delivers large volumes of data that need to be integrated into and processed by core systems. In this report Celent looks into what life and health insurance core systems vendors are doing to make this happen.

The Internet of Things (IoT) is no longer a prediction; it is a reality. It could enable insurers to achieve many long-held desires such as product personalization in high scale, move the focus from indemnity to prevention, and be a source of real innovation in terms of service and business models. IoT delivers a huge mass of data that needs to be integrated into and processed by core systems. Celent looks into what life & health core systems vendors are doing about it.
 
Celent believes sensor information is, and will increasingly be, integral to many aspects of the insurance relationship. Not having an IoT-ready solution will be a deal breaker. Vendors are recognizing this reality and are making investments in IoT capabilities that they expect will have a huge impact for them and their customers during the next five years. Vendors in general are engaging with their customers to understand the IoT solutions envisioned by them, developing proofs of concept, running pilots, and even codeveloping the solutions in some cases.

Claims is the functional area where vendors believe there is more value, followed by distribution/sales and policy service.
 
“High pressure on product delivery and R&D budgets is to be expected by vendors as they try to keep it up with their product roadmap,” commented Mazzini. “Insurers and vendors must continue co-developing the right solution. Many aspects of the IoT are still evolving, and these interactions will allow insurers to perfect the offering. In this evolution, what regulators and consumers end considering as an acceptable level of intrusion will certainly define the art of possible in IoT adoption in life and health insurance.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

     Key Research Questions

1

Survey Scope And Demographics

3

     Survey Scope

3

     Key Research Questions

5

Core Systems IoT Readiness

6

     IoT in Life and Health Insurance

6

     IoT Readiness: The Vendor Side

8

     Applications

9

     Data

12

     Plans

12

     Achieving Value from the IoT

13

     How Quickly Will Key Processes Use IoT Capabilities?

15

Areas of Prioritization

17

Operational Execution

20

Conclusion

23

     A Word for Core Systems Vendors

23

     And for Insurers

23

Leveraging Celent’s Expertise

25

     Support for Financial Institutions

25

     Support for Vendors

25

Related Celent Research

26

Sign in to download reports and access personalized information