IoT Plans and Priorities from Core Systems Vendors: Personal and Commercial Auto

by Juan Mazzini, November 7, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled IoT Plans and Priorities from Core Systems Vendors: Personal and Commercial Auto. The report was written by Juan Mazzini, a senior analyst with Celent's Insurance practice.

Internet of Things (IoT) is no longer a prediction; it is a reality. It could help insurers achieve many long-time desires such as personalizing products on a large scale, moving the focus from indemnity to prevention, and being a source of real innovation in terms of service and business models. IoT delivers a huge mass of data that needs to be integrated and processed by core systems. Celent looks into what vendors of these systems are doing about it for the auto line of business.

Core system vendors are deeply involved with the IoT. Fifty-nine percent of them either have IoT fully integrated into their product offering today or are running pilots. Medium and large vendors are leading the way in terms of IoT investment. Regardless of size, claims is the area where vendors believe there is more value, followed by product development/management and policy service. For core system vendors, IoT is becoming an integral part of their solution and service offering. Vendors are using a combination of models to deliver IoT as part of their solutions, though focusing the efforts through their product management and innovation units are the preferred methods.

“Core system vendors should expect to see their R&D budget increase. Core systems were getting complex enough without having IoT in the picture. Now it’s going to get extremely complex and costly if you want to continue to be a relevant player,” commented Mazzini.

“IoT comes along with a myriad of emerging technologies and trends that need to be blended into the R&D efforts. Celent has mapped around 46 emerging technologies in P&C alone," he added.

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

 

Key Research Questions

1

Survey Scope and Demographics

3

 

Survey Scope

3

 

Respondent Demographics

4

Core Systems IoT Readiness

6

 

IoT Readiness

6

 

Achieving Value from the IoT

9

 

How Quickly Will Key Processes Use IoT Capabilities?

11

Areas of Prioritization

14

Operational Execution

17

 

Management View of IoT

17

 

Organizational Tracking of IoT

18

Conclusion

20

 

A Word for Core Systems Vendors

20

 

And for Insurers

20

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

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