New SMA Research: Implications of the Connected World for Insurance

Boston, MA (Feb. 4, 2016) – Strategy Meets Action (SMA), a leading insurance strategic advisory firm, has just released a new research report, Insurance in the Connected World: Observations on Opportunities and Threats. The report provides a structured way to think about the connected world and explores the implications for various insurance lines of business. A range of emerging technologies and their implications are highlighted, including the Internet of Things, wearables, drones, robotics, artificial intelligence, and others.

“The world is becoming more connected and digital every day. Emerging technologies are advancing rapidly and creating endless new ways to connect, communicate, and manage our surroundings,” said Mark Breading, SMA Partner and report author. “Insurers of all lines will need to actively investigate and participate in shaping new connected-world value propositions to remain relevant and profitable in the future.”

The following are important themes and findings from this research:

  • Insurers rate customer experience as the top area to be transformed by the connected world, followed by products and internal operations.
  • Value propositions need more work. Many of the connected-world products available on the market now are narrow use, high price point items that work in isolation.
  • New ecosystems and partnerships are rapidly evolving. Success in the connected world will require active involvement in various ecosystems and a flexible partnering strategy.
  • Insurers must build capabilities to capitalize on three different categories of connected-world data: sense/respond data, real-time high volume structured data, and unstructured data.

Breading observed, “There is the potential for insurers to bring a lot of new value to individual and business customers, but it means rethinking many aspects of the business. This will require insurers to be proactive, because many outside insurance see the opportunity and consider the industry a prime candidate for disruption.”

The Insurance in the Connected World report covers P&C and L&A insurers in North America, and is based on SMA research on emerging technologies and trends and our analysts’ experience and observations.

Insurers, IT solution providers, and media that are interested in learning more should contact Mark Breading at mbreading@strategymeetsaction.com or 614-562-8310. Mark will be presenting his perspectives on these emerging technologies at the Insurance-Canada.ca Technology Conference on Feb. 29, 2016, and the next day’s Broker Forum on March 1.

About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com.

SOURCE: Strategy Meets Action (SMA)