The Emerging Architecture of the Internet of Things

by Craig Beattie, August 3, 2016
Industry Trends


Celent describes the concerns and capabilities related to embedding the Internet of Things into an insurer’s architecture.

Central to the approach is keeping the existing stack of technologies and components that enable the insurer to operate their core business: quote, bind, endorsements, claims, etc. Adjacent to this is a distinct architecture designed to capture and analyse high velocity data.

This architecture enables a mix of real-time and ad hoc analytics to be performed on these data sets. The magic, then, is in the glue between these two architectures, something like the right and left brain of the new insurer.

“In this report, Celent distinguishes three architectures: the classic core system architecture, the sensing architecture to capture sensor data, and the response architecture to communicate with customers,” says Craig Beattie, senior analyst in Celent's Insurance practice and author of the report.

This report examines how to join these architectures and provides a logical view of the relationship between them.


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].

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Table of Contents

Executive Summary



Key Research Questions





Key Research Questions



A Tale of Two Architectures


The Sensing Architecture


The Response Architecture


The Classic Architecture Link



The API and Event Architecture


Putting This All Together



Resulting Business Capabilities and Opportunities


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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