Internet of Things Plans and Priorities from Core Systems Vendors: P&C Edition

by Juan Mazzini, November 28, 2016
Industry Trends
Global

Abstract

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

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 P&C core systems vendors are doing to make this happen.

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 product development/management and policy service.

“The IoT could help insurers achieve many long-held desires, such as implementing product personalization on a large scale, moving the focus away from indemnity to prevention, and creating real innovation in terms of service and business models,” Mazzini said. “Insurers and vendors must continue codeveloping the right solution. Many aspects of the IoT are still evolving, and these interactions will allow insurers to perfect the offering.”

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 part 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 and Non-Auto P&C Insurance

6

 

IoT Readiness: The Vendor Side

10

 

Applications

11

 

Data

11

 

Plans

11

 

Achieving Value from the IoT

12

 

How Quickly Will Key Processes Use IoT Capabilities?

15

Areas of Prioritization

18

Operational Execution

21

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

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