Documentos de Académico
Documentos de Profesional
Documentos de Cultura
of Things
in insurance
Shaping the right
strategy, managing
the biggest risks
The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
The IoT:
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The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
The impact:
EYs 2016
Sensor survey:
lagging insurers must
embrace new data
54%
50%
47%
Retail
Automotive
Transportation
47%
47%
Electronics :Yfcaf_'fYf[aYd
services
46%
36%
Telecom
Insurance
The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
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control systems have long been standard within
manufacturing environments. Commercial insurers
have also matured their modeling capabilities,
especially relative to natural disasters. These
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Superstorm Sandy in 2012, where insurers carefully
tracked the impact of the storm and proactively
alerted policyholders of imminent risks. Combining
data layering wearable technology data with GIS
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data against historical patterns enables deeper
understanding of risk, both in real time and across
historical perspectives.
Claims
The IoT is likely to drive further evolution in claims,
as it orients more toward active loss prevention. For
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and water damage. In-vehicle sensors can also be
useful in providing warnings in case of dangerous
driving patterns. Within group health insurance, the
discounts offered to employees who monitor their
activity levels and heart rates could be considered
a claims prevention program. Increasingly, within
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driven opportunities to enhance incident management
and claims service, such as proactively offering towing
or loaner vehicles in the event of an accident, rather
than just covering these costs.
Life
Life insurers can now automate and streamline the
traditionally intrusive and lengthy underwriting
process, because sensor data provides the means to
answer a lot of the questions from yesterdays paperbased application forms. This opens the door to a
greater focus on millennials and younger customers,
as well as on policies with lower face amounts.
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the promotion of healthier lifestyles and potentially
pay-as-you-go models. There are even opportunities
to automate retirement planning processes and offer
simpler and more affordable products.
The Internet of Things in insurance: shaping the right strategy, managing the right risks
Ways to get
started
www.ey.com
The future of
product innovation
Component-ized product bundles
based on tailored features and pricing
Risk
Features
Price
Access
Consider downselling
as well as upselling
Insurers must be prepared to subtract features
and eliminate discounts for those individual
customers who are not likely to contribute
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customer segments and product components,
insurers can offer high-value customers
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The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
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customers should not necessarily be encouraged
to renew or make additional purchases. For an
industry obsessed with upselling, such data-driven
downselling may seem illogical. The business
case is compelling however, as downselling not only
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Customer
data security
and privacy
Engage underwriting
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historical data sets, underwriting teams can and
should play a more active role in product design
especially in the realm of modular and customizable
product architectures. By marrying different data
sets (e.g., GIS and wearable technology), insurers can
realize step gains in enhancing modeling capabilities.
Creating an
analytics
culture
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to be asked and answered
Create focus on layering insights
back into business as usual
Second-guess old architectures
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Product
innovation
Focus on product
enhancements, rather than
additional channels
Develop featurization and
bundling capabilities
Be prepared to downsell to
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Seek to balance customer value
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Underwriting
Life
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product structures and dynamic
payment capabilities for usagebased and pay-as-you-go
models
Seek to engage customers
based on their needs (not your
products)
Claims
The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
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www.ey.com
The Internet of Things in insurance: shaping the right strategy, managing the right risks
www.ey.com
Contacts
Kevin Koenig
Christopher Lanzilotta
+1 410 783 3739
christopher.lanzilotta@ey.com
Steve LaValle
+1 617 425 7311
steve.lavalle@ey.com
Rishi Pande
MJ Vaidya
+1 404 541 7039
mj.vaidya@ey.com
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About EY
=QakY_dgZYdd]Y\]jafYkkmjYf[]$lYp$ljYfkY[lagfYf\
advisory services. The insights and quality services we
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All Rights Reserved.
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ED None
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