Internet of Things Plans and Priorities from Core Systems Vendors: Life & Health

by Juan Mazzini, November 30, 2016
Industry Trends


Celent has released a new report titled Internet of Things Plans and Priorities from Core Systems Vendors: Life & Health. The report was written by Juan Mazzini, a senior analyst with Celent’s Insurance practice.

Key Research Questions



How deep into IoT are insurance core systems vendors??


What areas are priorities for investment?


How do vendors plan to deliver IoT capabilities

The IoT could change every part of the insurance value chain, but also delivers large volumes of data that need to be integrated into and processed by core systems. In this report Celent looks into what life and health insurance core systems vendors are doing to make this happen.

The Internet of Things (IoT) is no longer a prediction; it is a reality. It could enable insurers to achieve many long-held desires such as product personalization in high scale, move the focus from indemnity to prevention, and be a source of real innovation in terms of service and business models. IoT delivers a huge mass of data that needs to be integrated into and processed by core systems. Celent looks into what life & health core systems vendors are doing about it.
Celent believes sensor information is, and will increasingly be, integral to many aspects of the insurance relationship. Not having an IoT-ready solution will be a deal breaker. Vendors are recognizing this reality and are making investments in IoT capabilities that they expect will have a huge impact for them and their customers during the next five years. Vendors in general are engaging with their customers to understand the IoT solutions envisioned by them, developing proofs of concept, running pilots, and even codeveloping the solutions in some cases.

Claims is the functional area where vendors believe there is more value, followed by distribution/sales and policy service.
“High pressure on product delivery and R&D budgets is to be expected by vendors as they try to keep it up with their product roadmap,” commented Mazzini. “Insurers and vendors must continue co-developing the right solution. Many aspects of the IoT are still evolving, and these interactions will allow insurers to perfect the offering. In this evolution, what regulators and consumers end considering as an acceptable level of intrusion will certainly define the art of possible in IoT adoption in life and health insurance.”

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


Survey Scope And Demographics


     Survey Scope


     Key Research Questions


Core Systems IoT Readiness


     IoT in Life and Health Insurance


     IoT Readiness: The Vendor Side








     Achieving Value from the IoT


     How Quickly Will Key Processes Use IoT Capabilities?


Areas of Prioritization


Operational Execution




     A Word for Core Systems Vendors


     And for Insurers


Leveraging Celent’s Expertise


     Support for Financial Institutions


     Support for Vendors


Related Celent Research


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