Are Insurers Ready for the Internet of Things?

And Should They Be?
by Donald Light, October 29, 2014
Industry Trends
Global, North America

Abstract

Celent asked a panel of CIOs a series of questions about their company’s readiness for the Internet of Things (IoT). The survey asked the CIOs about how their C-Suites view the potential importance of the IoT.

The questions covered a number of topics, including:

  • Views of the IoT in the C-Suite and among IT management
  • Organizational responsibility for tracking IoT developments
  • LOBs’ current and future IoT activity
  • Value chain-specific current and future IoT activity
  • Technological readiness

“In general insurers are in a watchful waiting mode. They believe that the Internet of Things will make a significant difference to how they do business,” says Donald Light, Director of Celent’s Americas Property & Casualty Practice and author of the report. “But they see this occurring over a period of several years. Auto insurance telematics / usage-based insurance is the one notable exception to that general trend.”

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 subsidiary 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

2

Senior Management View: How Important Is the IoT?

3

Who Is Tracking the IoT?

7

How Quickly Will IoT Capabilities Develop?

9

How Quickly Will Key Processes Use IoT Capabilities?

14

How Quickly Will Auto and Homeowners Lines Utilize the IoT?

20

How Much Value In Key Processes Will the IoT Deliver in Five Years?

24

Conclusion

30

Leveraging Celent’s Expertise

31

 

Support for Financial Institutions

31

 

Support for Vendors

31

Related Celent Research

32

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