For the past several weeks we’ve been looking at what people want from connected home technology and the opportunities for insurers to leverage the rapidly expanding IoT technological options to meet those needs.
Every quarter, Accenture examines how digital insurers are innovating. As we look into the dimensions needed to succeed, some of our colleagues have developed this very simple diagram highlighting the key dimensions you need to balance in order to become successful “insurer of things”:
As you might expect a successful “insurer of things” starts from analysing customer needs but increasingly seeks to invent new value proposition shifting away from offering pure risk coverage to the creation of a package of interlinked products and services geared to the individual customer and powered by new technology and data management capabilities.
Actually, the fusion of data and interconnectivity into what our Fjord colleagues call “Living Services” will completely transform our notion of what an insurer can do for us and will allow insurer of things to move beyond insurance into new spaces.
There are many examples of these new spaces that “Insurers of Things “seeking to build customer relationships and establish a lasting competitive advantage through differentiation are piloting or for some of them already included in their offering :
- Extended security – Increasingly sophisticated alarm systems not only detect intrusions but also fire risks via smoke detectors, water leaks and power outage can alert clients, insurer’s call centers and law enforcement authorities; they can trigger photographs or video footage (which may be viewed remotely by customers on their smart phones, allowing them to determine whether there is real cause for alarm) and enhancing the likelihood of apprehension, prevent losses and loss recovery.
- Home content monitoring and replacement. Automated devices can track the age, maintenance records and general condition of major appliances and systems such as HVAC. Customers can receive automated reminders and/or recommendations on maintenance, along with suggestions on replacement purchases.
- Weather notifications. Customers can receive notifications and updates on severe weather conditions via their preferred channel. In addition, they can be given the option to have certain valuable items (such as cars) protected or placed in storage during high-risk events. Insurers themselves can make bulk purchases of replacement items ranging from carpeting to televisions to help customers deal with replacement issues in the aftermath of major catastrophes.
- Health monitoring. Through wearable devices, motion detectors and other innovations, insurers can monitor physiological statistics and offer recommendations related to lifestyle improvement, behaviour changes as well as helping their elderly client stay longer in their home in a secured environment also involving their children and family.
- Concierge services. Insurers can offer new concierge-type services in areas ranging from scheduling appointments to booking entertainment events.
Next week, we will look at practical steps insurers can take to evolve into “insurers of things” balancing the various dimensions we discussed today.
Other papers on the topic that you might find useful: