There continues to be a lot of buzz around the Internet of Things (IoT), and rightly so. With power to enable new digital services and business models based on intelligent connected devices and machines, the IoT is arguably the biggest driver of productivity and growth in the next decade. By 2030, capital investments in the IoT and the productivity gains that should follow are expected to add US$6.1 trillion to the United States’ cumulative GDP.
Life insurers’ slice of the bigger pie will likely come in two primary ways: delivering more personalized service to attract and retain customers, and turning every worker into a knowledge worker.
Consider that connected devices, such as wristbands, heart-rate monitors or eyewear, worn by customers can give insurers real-time insight on customers’ overall health—enough to not only offer tailored premiums but to engage with other providers to help customers take actions to achieve their health goals. Internally, carriers can employ connected devices to highly automate repeatable processes—for example, innovative analytics conducted on big data by machines can easily process new business and free up underwriters to focus on more value-added activities.
To seize the opportunities and become a digital life insurer, carriers must think unconventionally and intensify their efforts to do three things: reimagine industry models to become digital life insurers; capitalize on the value of data; and prepare for the future of work.
Over my next three posts in this series, I’ll share more about these key actions. Until then, explore the IoT trend and opportunity in these related points of view: