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

by Juan Mazzini, November 7, 2016
Industry Trends


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].

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Table of Contents

Executive Summary



Key Research Questions


Survey Scope and Demographics



Survey Scope



Respondent Demographics


Core Systems IoT Readiness



IoT Readiness



Achieving Value from the IoT



How Quickly Will Key Processes Use IoT Capabilities?


Areas of Prioritization


Operational Execution



Management View of IoT



Organizational Tracking of IoT





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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