Will Insurers Be Connected to the Connected Car?

by Donald Light, November 22, 2016
Product Trends/ Reviews
Global

Abstract

Celent has released a new report titled Will Insurers Be Connected to the Connected Car? The report was written by Donald Light, a research director in Celent’s Insurance practice.

This report looks at the rapidly evolving connected car ecosystem and describes the implications for motor vehicle insurers.

Cars are being connected to infotainment providers, as well as auto manufacturers, auto dealers, repair shops … and insurers. The ecosystem participants are providing a broad range of information and products to broaden and deepen their relationships with vehicle owners and passengers. Auto insurers must go beyond telematics and develop alliances with vehicle manufacturers, dealers, fleet management system providers, and others.

“At the moment, value propositions are centered on telematics offerings which reduce premiums for good drivers, and providing a few closely related offerings,” commented Light. “This is a good strategy for insurers today, but will leave them too vulnerable in the next few years.”

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 operating unit 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

What Is a Connected Car Connected to?

2

Who Is Doing What and Why

5

Why This Matters to Auto Insurers and What They Should Do

8

Technology Implications for Insurers

10

Leveraging Celent’s Expertise

11

 

Support for Financial Institutions

11

 

Support for Vendors

12

Related Celent Research

12

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