IoT is certainly here to stay and it can not be emphasized enough that companies within the insurance industry who are not currently investing time and resources into IoT are putting themselves at significant risk of falling behind, or worse, being eliminated, by the competition.
Nigel Walsh, head of UK insurance at Capgemini, told Internet of Business: “IoT is coming whether we like it or not –we live in a much more connected world and from our research we see GenY relying on it much more. Very little is not connected.
“The key challenge for issuers will be getting ready to leverage this huge volume and speed of data and importantly being able to act, both reactively and proactively to drive a better outcome for their customers, partners and brokers.
“Once they have it it’s then linking it back to their legacy core systems and data platforms that will really make a difference. Some companies are now offering per hour or per day policies, new business models are on the way enabled in many ways by IoT.”
With the fundamental shift towards mobile technology and customer expectation for real-time transactions and access to financial services 24/7, that is the question being asked by many IT experts. In addition to customer expectation, there is also an increased risk of outages: “For the next five years – and we’re talking globally – every incumbent banking player who’s been around for a while will have an increased risk of outages,” says Julian Skan, managing director of financial services at consultancy Accenture.
“When a bank reaches a certain size it becomes too risky to change the core technology, so you build layers on top, and that adds complexity.”
“79% of insurance industry CXOs identified technology as a key factor changing the competitive landscape”.