The Internet of Things will change the life and health business. Can an old industry learn new tricks?
New York, NY (May 16, 2014) – The world is changing. It is becoming more connected. People, places, and things are using these connections to exchange an exploding amount of digital information and data. This digital stuff is stored and analyzed, and then yields predictions, feedback, and control.
The Internet of Things (IoT) has three, interdependent components: things with networked sensors, data stores, and analytics engines.
“The value creation of the IoT lies in what connects the three components: one, the internal state and external status data and information, which can provide a much more accurate, and sometimes previously unavailable, picture of the hazards and risks of what is being insured; two, analytically driven findings — some looking backward to improve pricing, underwriting, and claim decisions and others looking forward to changing behavior and performance; and three, feedback and control processes to command or request things to change their loss-related behavior and performance,” said Donald Light, Director of Celent’s Americas Property/Casualty Practice and author of the report.
This report discusses how The IoT will change every part of the insurance value chain: product design, pricing, underwriting, service, and claims.
Full report from Celent.
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].