Jamie Rodgers, Global Insurance expert at CGI discusses whether the Internet of Everything has the power to disintermediate Insurers from the risks they’ve always insured. Find out more about CGI’s expertise in Insurance at www.cgi.com/insurance

1. © CGI Group Inc. CONFIDENTIAL
Insurers and the Internet of Everything: At Risk of Disintermediation?
Jamie Rodgers
Global Insurance Lead
CGI

2. CGI is a global end-to-end IT and business process services leader
World’s 5th largest independent IT and BPS firm
100+ mission-critical IP-based solutions
$10B
annual revenue
4,500 clients
across the globe
68,000 professionals,
75% shareholders
High-end business and
IT consulting
400 offices, 40 countries
around the world
System integration,
IT and business process
outsourcing
9/10
client satisfaction score for the past 10 years
2

3. 3
CGI’s capabilities in insurance
35+ years of expertise and capabilities across all aspects of the P&C and life insurance value chain, and at the forefront in the drive to streamline, harmonize and modernize capabilities for clients
Ratabase®–the industry’s leading rating engine with more than 85 P&C and Life insurance installations in North America and the UK
Provider of consulting and IT services to 7 of the top 10 insurers in the world, and more than 200 clients globally
Systems Integrator for the world’s leading core insurance software solutions
More than 15 million transactions and information products delivered annually as part of core underwriting processes
1,500 members dedicated to IT outsourcing and application management services globally, and 3,500 members in total focused on Insurance
Credentials
Clients
Ratabase® is a registered trademark of CGI Group Inc. and its related companies.

4. Hypothesis
“The Internet of Everything has the power to disintermediate Insurers from the risks they’ve always insured.”
4
Assumption
“People will continue to want to insure the things of value that they own.”
Insurer
Policyholder
Thing of Value
Insurance
•Historical focus
•One size fits many
•Few customer touchpoints
Insurer
Policyholder
Sensored Thing of Value
Data Processor
Insurance
•Real-time focus
•Customization
•Many touchpoints

5. What is the Internet of Everything?
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The Internet of Everything (IoE) is a world where smart objects are seamlessly integrated as part of a global network; where smart objects interact without human intervention to deliver new services or improved processes. IoE redefines the way humans and machines interface and the way they interact with the world around them.

6. Set for Rapid Growth
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Sources (top left and then clockwise): Analysys Mason, 2013; Berg Insight, 2013; Forrester 2011; Frost & Sullivan, 2012.

7. Usage Based Auto Insurance is Just the Start
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8. Relevant Risk Data that could previously only be assumed – mass customization
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Source: IEEE Intelligent Transportation Systems Magazine, July, 2014

9. What else might Insurers be interested in tapping?
Thing Sensored
Risk Data Captured
Insurance LoB
Building
•Presence
•HVAC
•Basement water
•Power
•Air quality
•Smoke and Fire
•P&C
People
•Activity levels
•Activity context
•Physiological data
•Sleep patterns
•Health
•Life
•Travel
Machine
•Hours of operation
•Temperatures
•Maintenance activity
•Business Interruption
•Commercial Liability
•Warranty
City
•Traffic
•Crime
•Air quality
•Snow accumulation/removal
•Demographics
•P&C
•Life
•Health
•Annuity
Agriculture
•Crop health
•Water levels
•Crop/Forest insurance
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10. Valuable Data from Sensors goes Somewhere and someone’s doing something with it
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11. Beware the Auto Manufacturers?
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12. Beware the Drone Manufacturers?
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13. Beware the Big Data Analytics Firms?
•Started by ex-Google employees
•Sells Crop Insurance
•Platform ingests weather measurements from 2.5 million locations, 150 billion soil observations to generate 10 trillion weather simulation data points every day
•Manages over 50 terabytes of live data in its systems at any given time
•Pays claims whenever specific weather events occur, automatically
•Purchased by Monsanto in 2013 for $1.1B
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14. Some are Getting it Right
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15. Some are Getting it Right
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16. Some are Getting it Right
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17. Some are getting it right
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Courtesy: Tokio Marine

18. Can you use my data to offer improved products, offers or advice?
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CGI: Understanding Consumers in the Digital Era, 2014

19. Uncertainty Drives the need for Innovation – going forward it will be for more than just technology
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20. Insurers can be at the centre of the Internet of Everything
The Internet of Cars
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