Insurers Must Prepare for Changes in Customer Engagement from IoT and Wearables

Novarica’s newest report reviews developments and barriers to adoption, along with implications for customer experience

Boston, MA (Apr. 18, 2016) – Consumer adoption of Internet of Things (IoT) and wearables continues to grow, and the growth of the Internet of Things is also starting to change how consumers interact with the world around them. Leading insurers are finding ways to leverage the data available from these technologies to improve operations and better engage customers, but the industry as a whole needs to prepare for future changes in consumer behavior and expectations. In its newest report, research and strategic advisory firm Novarica reviews the latest trends, issues, and challenges in applying these technologies to insurance products and operations.

“We’ve seen many emerging technologies go from innovation to initial use, and the pace of change is only going to accelerate,” notes Tom Benton, VP of Research and Consulting at Novarica and lead author of the report. “Insurers would do well to start planning now for broader adoption of IoT technologies over the second half of this decade.”

The report is available here. Key findings include:

  • The large growth in the IoT and wearable device consumer market is changing customer experience and expectations. Customer experience is moving from passive, lookup, app-based information to an interactive, notification-driven environment.
  • The combination of device data and advanced analytics and AI is driving this change in consumer behavior. Massive amounts of data enables quantification of equipment and humans, and analytics and AI are beginning to enable advanced responsive actions for the inputs.
  • The future of IoT and wearables is arriving for insurers. While IoT and wearable device application is mostly experimental so far, insurers can prepare now for the likely changes in consumer behavior that these devices will bring.

About Novarica

Novarica helps more than 80 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its clients include more than 80 property/casualty and life/annuity insurers. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and of nearly 400 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. More information at www.novarica.com.

Source: Novarica