Are Asia-Pacific Insurers Ready for the Internet of Things? And Should They Be?

by Wenli Yuan, September 28, 2016
Industry Trends
Asia-Pacific

Abstract

Celent has released a new report titled Are Asia-Pacific Insurers Ready for the Internet of Things? And Should They Be? The report was written by Wenli Yuan, senior analyst in Celent’s Asian Financial Services practice.

Based on a survey of Celent’s Asia Insurance Research Panel, this report focuses on uses of the Internet of Things (IoT) by insurers in Asia.

The majority of insurers will be fully capable of providing insurer-supplied networked sensors, storing and accessing telematics data, and analyzing and modeling data within three years.

Currently, IoT technology is delivering little or no value. But in five years, the IoT will deliver a good deal of value to all key insurance processes, especially in claims, product development and product management, and distribution.

Currently, IoT activities are concentrated on personal auto, individual life, homeowners, commercial auto, and individual health insurance. Five years from now, more than half of insurers believe that the IoT will be fully integrated into their product offerings in personal auto, homeowners, individual health, group health, commercial property, individual life, commercial auto, and workers’ compensation business.

“Many insurers are currently implementing pilot projects, but many others are still in a watchful, waiting mode. Insurers believe that the Internet of Things will make a significant difference in how they do business. Moreover, they see this occurring within the next five years,” says Yuan.

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

Introduction

3

Senior Management’s View: How Important Is the IoT?

4

Who Is Tracking IoT Readiness?

5

Technological Readiness

6

 

Auto Business

7

 

Non-Auto Lines

8

 

Develop or Buy

10

Current and Future Value in Key Processes

12

 

Product Development and Product Management

12

 

Distribution and Sales

13

 

Underwriting

13

 

Policy Service

14

 

Claims

15

 

Value Delivery in Key Processes

15

Value Chain–Specific IoT Activity

17

 

Utilizing IoT in Pricing

17

 

Utilizing IoT in Underwriting

18

 

Utilizing IoT in Claims Process

18

 

Utilizing IoT in Product Design

19

 

Utilizing IoT to Change Policyholder Behavior

20

 

Utilizing IoT to Change Risks of Things

21

IoT Activity in Property and Casualty Insurance

23

 

Compare IoT Activities Within Property and Casualty Lines

23

 

Auto Insurance / Telematics

24

 

Homeowner and Commercial Property Insurance

26

 

Other Property and Casualty Insurance

26

 

Drones Used by Asia-Pacific Insurers

27

IoT Activity in Life and Health Insurance

28

 

Compare IoT Activities Within Life and Health Lines

28

 

Individual Life and Health Insurance

29

 

Use of Wearable Devices

29

Conclusion

31

Leveraging Celent’s Expertise

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

33

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