With the profusion of insurance consumer data coming online, the role of data intermediaries is emerging as a key player in the insurance ecosystem. Insurance distributors are especially well-suited to take the lead in analyzing leveraging user data and sharing insights to drive innovative product offerings and growth.
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
Modernizing Insurance Data to Drive Intelligent DecisionsCognizant
To thrive during a period of unprecedented volatility, insurers will need to leverage artificial intelligence to make faster and better business decisions - and do so at scale. For many insurers, achieving what we call "intelligent decisioning" will require them to modernize their data foundation to draw actionable insights from a wide variety of both traditional and new sources, such as wearables, auto telematics, building sensors and the evolving third-party data landscape.
Technology and Innovation in Insurance– Present and Future Technology in Indi...Dr. Amarjeet Singh
Insurance companies are unique — most of their interactions with customers happen through an agent. In effect, a chunk of technology investment goes into improving agent experience. Insurers have developed systems to advise agents on products tailored for specific customers, depending on their history with the insurer and income band. Bajaj Allianz Life Insurance has a mobile app to hire agents. This helps in training, exams and licensing. It has brought on board 15,700 consultants digitally in the past year, cutting down processing time by half.
Insurers have launched mobile phone apps, making it easier for customers to transact with them. They are, slowly and surely, moving towards paperless claims as well. These are, however, only the first steps in digital transformation. Changing core systems is expensive and complicated. So, most transformation initiatives focus on improving systems of engagement with customers.
With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Block chain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.
1. Smartphones have become the dominant internet device in the UK, used by 66% of people. The insurance industry could benefit from adopting mobile trends to better engage with customers.
2. Insurance companies should aim to be more customer-centric, engage in two-way dialogs, adopt agile models and increase awareness through personalized mobile content.
3. While insurance has traditionally been paper-based, mobile provides opportunities for customer insights, personalization, and social media engagement that companies should pursue.
Don’t bid farewell to your insurance agent just yet. NTT DATA Consulting provides a reality check on AI’s transformative impact on the insurance industry. Download the full report “The AI Revolution in Insurance: A Reality Check” on the NTT DATA website.
How P&C Insurers Can Unlock Value from Mergers & AcquisitionsCognizant
P&C insurers are likely entering a historic era of increased M&A activity aiming to drive growth at a double-digit pace, pivot into new business models and remain competitive. These insurers will be under pressure to realize the projected revenue growth and cost savings through integration synergies. Here's how P&C insurers should complete a post-merger integration - from strategy development and planning through execution.
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
Modernizing Insurance Data to Drive Intelligent DecisionsCognizant
To thrive during a period of unprecedented volatility, insurers will need to leverage artificial intelligence to make faster and better business decisions - and do so at scale. For many insurers, achieving what we call "intelligent decisioning" will require them to modernize their data foundation to draw actionable insights from a wide variety of both traditional and new sources, such as wearables, auto telematics, building sensors and the evolving third-party data landscape.
Technology and Innovation in Insurance– Present and Future Technology in Indi...Dr. Amarjeet Singh
Insurance companies are unique — most of their interactions with customers happen through an agent. In effect, a chunk of technology investment goes into improving agent experience. Insurers have developed systems to advise agents on products tailored for specific customers, depending on their history with the insurer and income band. Bajaj Allianz Life Insurance has a mobile app to hire agents. This helps in training, exams and licensing. It has brought on board 15,700 consultants digitally in the past year, cutting down processing time by half.
Insurers have launched mobile phone apps, making it easier for customers to transact with them. They are, slowly and surely, moving towards paperless claims as well. These are, however, only the first steps in digital transformation. Changing core systems is expensive and complicated. So, most transformation initiatives focus on improving systems of engagement with customers.
With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Block chain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.
1. Smartphones have become the dominant internet device in the UK, used by 66% of people. The insurance industry could benefit from adopting mobile trends to better engage with customers.
2. Insurance companies should aim to be more customer-centric, engage in two-way dialogs, adopt agile models and increase awareness through personalized mobile content.
3. While insurance has traditionally been paper-based, mobile provides opportunities for customer insights, personalization, and social media engagement that companies should pursue.
Don’t bid farewell to your insurance agent just yet. NTT DATA Consulting provides a reality check on AI’s transformative impact on the insurance industry. Download the full report “The AI Revolution in Insurance: A Reality Check” on the NTT DATA website.
How P&C Insurers Can Unlock Value from Mergers & AcquisitionsCognizant
P&C insurers are likely entering a historic era of increased M&A activity aiming to drive growth at a double-digit pace, pivot into new business models and remain competitive. These insurers will be under pressure to realize the projected revenue growth and cost savings through integration synergies. Here's how P&C insurers should complete a post-merger integration - from strategy development and planning through execution.
The Work Ahead in Banking & Financial Services: The Digital Road to Financial...Cognizant
Banking and financial services organizations are moving beyond the basics of digital banking and one-size-fits-all services, according to our recent study. Using AI, automation and analytics, they aim to speed processes, blend human-centric and tech-driven customer engagement and deliver personalized financial wellness.
The document discusses the growing insurtech industry. It notes that insurance is an old-fashioned industry that is ripe for disruption through new technology. Insurtech startups are creating innovative new insurance products and services that are more customer-friendly. Examples are given of several prominent insurtech companies that are using approaches like behavioral pricing, usage-based policies, and robo-advisors to transform the insurance customer experience. The size and growth of the insurtech investment and industry are also discussed.
The document discusses how data and technology are transforming the insurance industry. It covers topics like how insurers are using data from telematics, health apps, and other sources to better assess risk and offer more personalized premiums. This allows for pricing tailored to individuals based on their behavior rather than just demographics. However, increased data collection also raises privacy concerns for consumers about what data is being collected and how it will be used and secured. Insurers are aiming to address these concerns through transparency about their data practices while harnessing new sources of data to improve their business.
This document discusses the challenges insurance companies face in keeping up with technological advances. It notes that only 15% of insurance businesses consider themselves technologically progressive, and that outdated systems and a generational gap are hindering modernization efforts. However, improving efficiency, customer experience, fraud detection, and mobile technologies could help companies better serve customers and gain competitive advantages if they are willing to invest in new technologies like smart machines and the Internet of Things.
Market scope of US health insurance industryRony Debnath
This was an assignment work for Relisource on Market scope of US health insurance industry
Topics Discussed here:
♦What is health care insurance
♦How health care insurance works in USA?
♦Share of people with public health insurance in the United States
♦Market share of leading health insurance companies
♦Total revenue of life and health insurance industry in the United States
♦The Use of Technology With the Health Insurance Industry
♦Problems that are health insurance companies facing today
♦Scope of improvements in healthcare information technology
♦Number of health insurance home-office employees in the U.S
♦Possible opportunities
♦Major Companies & products
♦What Relisource can offer
Data has always played a central role in the insurance industry, and today, insurance carriers have access to more of it than ever before. We have created more data in the past two years than the human race has ever created. Insurers—like organisations in most industries—are overwhelmed by the explosion in data from a host of sources, including telematics, online and social media activity, voice analytics, connected sensors and wearable devices. They need machines to process this information and unearth analytical insights. But most insurers are struggling to maximise the benefits of machine learning.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
7 Ways Insurance Brokers Should Approach InsurTechSiren Group
“InsurTech” is a term used quite often these days – a spin-off of the even more popular word “FinTech.” It refers to technologies and platforms. These platforms can help optimize any of the principles for success or requirements of insurance.
InsurTech encompasses companies that provide insurance, but engage technology in a user-centric way.
Here are 7 ways of making InsurTech the heart of your business:
Emerging trends and opportunities in private insurance sectorVivek Shrotriya
The document discusses emerging trends and opportunities in the private insurance sector in India. It provides an overview of the insurance industry in India, including key facts about its size and major players. It also describes the roles and functions of the Insurance Regulatory and Development Authority (IRDA) and the growing trend of bancassurance. Some emerging trends in the industry include increased digitization, new products for the sharing economy, and greater use of analytics. Significant opportunities for growth exist due to low insurance penetration, an untapped market, and regulations protecting policyholders.
This document discusses using AI and data modeling to improve insurance operations. It provides examples of using structured text, customer data, and other sources to build models for risk assessment, fraud detection, and other tasks. The document emphasizes the importance of data quality and having a holistic data strategy. It also stresses an iterative approach to AI development and increasing skills. An example use case describes using natural language processing models to assist underwriters by providing relevant risk expertise and intelligence from various data sources.
- Matteo Carbone is the founder of the Connected Insurance Observatory, which monitors insurance IoT developments. Over 45 organizations are members.
- Insurance IoT is about connecting insurance to people and risks using sensors to collect risk data and telematics to transmit the data for use in the insurance value chain (e.g. auto, health, property insurance).
- In Italy, telematics represents 16% of auto insurance contracts and 26 insurers offer telematics-based motor third party liability coverage. 65% of observatory members have seen a material impact of telematics on the auto insurance market.
This report looks at how digital platform companies and the ecosystems they are creating are reshaping customer experience expectations for insurers. It considers insurance carriers’ options for creating digital platforms and ecosystem strategies that will enable them to grow their relevance and market power in a changing world.
To read more, visit https://www.accenture.com/us-en/insight-emerging-insurance-ecosystem
Insurance carriers future competitive advantage will be determined not by their organization alone, but by the digital platforms and ecosystems they choose. Read more.
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of “must-have” elements for an insurer in order to deliver the promise of a smart home value proposition.
This document discusses how big data is impacting the insurance industry. It covers how insurers are using big data across the insurance value chain, from underwriting to pricing to claims management and fraud detection. Insurers are able to create more comprehensive customer profiles by combining internal and external data sources. This allows for more personalized insurance offerings and pricing models like usage-based insurance. The document also provides examples of insurers that are leveraging telematics data and innovative technologies to improve their business operations and customer experience.
The IoT Insurance Observatory is a four year old think tank specialized in insurance IoT
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
Id insurance big data analytics whitepaper 20150527_lo resPrakash Kuttikatt
The document discusses how big data and analytics are disrupting the insurance industry. It provides background on the authors and describes the Australian insurance landscape, noting challenges like an aging population and increased natural disasters. It then discusses how big data is transforming the insurance value chain by enabling more accurate risk assessment and pricing through analysis of diverse new sources of data like telematics and social media. Insurers who leverage big data and analytics to gain insights and improve customer relationships will have a competitive advantage over those who do not adapt to this new digital environment.
Digital transformation is disrupting the insurance industry in three main ways: 1) Through hyper-personalized insurance products enabled by new data sources and customer data; 2) New competitors like insurtech companies and other industries entering insurance; 3) Emergence of new data sources and technologies that allow for new types of products and more customer-centered experiences. Insurers must leverage semantic graph technologies and data fabrics to integrate diverse new data sources, gain insights from data to develop new products and services, and remain competitive against new entrants.
This document discusses how adopting IoT can enhance insurance business operations. It outlines several ways IoT can impact the insurance industry, such as improving underwriting through access to more accurate customer data from wearables and sensors. IoT also enables better claims processing and loss prevention. However, expanding risk boundaries and gaining consumer adoption of connected devices present challenges to insurers adopting IoT. The objective is to define how new IoT data and technologies could shape innovation, operations, pricing strategies, and risk management in the insurance sector.
The Work Ahead in Banking & Financial Services: The Digital Road to Financial...Cognizant
Banking and financial services organizations are moving beyond the basics of digital banking and one-size-fits-all services, according to our recent study. Using AI, automation and analytics, they aim to speed processes, blend human-centric and tech-driven customer engagement and deliver personalized financial wellness.
The document discusses the growing insurtech industry. It notes that insurance is an old-fashioned industry that is ripe for disruption through new technology. Insurtech startups are creating innovative new insurance products and services that are more customer-friendly. Examples are given of several prominent insurtech companies that are using approaches like behavioral pricing, usage-based policies, and robo-advisors to transform the insurance customer experience. The size and growth of the insurtech investment and industry are also discussed.
The document discusses how data and technology are transforming the insurance industry. It covers topics like how insurers are using data from telematics, health apps, and other sources to better assess risk and offer more personalized premiums. This allows for pricing tailored to individuals based on their behavior rather than just demographics. However, increased data collection also raises privacy concerns for consumers about what data is being collected and how it will be used and secured. Insurers are aiming to address these concerns through transparency about their data practices while harnessing new sources of data to improve their business.
This document discusses the challenges insurance companies face in keeping up with technological advances. It notes that only 15% of insurance businesses consider themselves technologically progressive, and that outdated systems and a generational gap are hindering modernization efforts. However, improving efficiency, customer experience, fraud detection, and mobile technologies could help companies better serve customers and gain competitive advantages if they are willing to invest in new technologies like smart machines and the Internet of Things.
Market scope of US health insurance industryRony Debnath
This was an assignment work for Relisource on Market scope of US health insurance industry
Topics Discussed here:
♦What is health care insurance
♦How health care insurance works in USA?
♦Share of people with public health insurance in the United States
♦Market share of leading health insurance companies
♦Total revenue of life and health insurance industry in the United States
♦The Use of Technology With the Health Insurance Industry
♦Problems that are health insurance companies facing today
♦Scope of improvements in healthcare information technology
♦Number of health insurance home-office employees in the U.S
♦Possible opportunities
♦Major Companies & products
♦What Relisource can offer
Data has always played a central role in the insurance industry, and today, insurance carriers have access to more of it than ever before. We have created more data in the past two years than the human race has ever created. Insurers—like organisations in most industries—are overwhelmed by the explosion in data from a host of sources, including telematics, online and social media activity, voice analytics, connected sensors and wearable devices. They need machines to process this information and unearth analytical insights. But most insurers are struggling to maximise the benefits of machine learning.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
7 Ways Insurance Brokers Should Approach InsurTechSiren Group
“InsurTech” is a term used quite often these days – a spin-off of the even more popular word “FinTech.” It refers to technologies and platforms. These platforms can help optimize any of the principles for success or requirements of insurance.
InsurTech encompasses companies that provide insurance, but engage technology in a user-centric way.
Here are 7 ways of making InsurTech the heart of your business:
Emerging trends and opportunities in private insurance sectorVivek Shrotriya
The document discusses emerging trends and opportunities in the private insurance sector in India. It provides an overview of the insurance industry in India, including key facts about its size and major players. It also describes the roles and functions of the Insurance Regulatory and Development Authority (IRDA) and the growing trend of bancassurance. Some emerging trends in the industry include increased digitization, new products for the sharing economy, and greater use of analytics. Significant opportunities for growth exist due to low insurance penetration, an untapped market, and regulations protecting policyholders.
This document discusses using AI and data modeling to improve insurance operations. It provides examples of using structured text, customer data, and other sources to build models for risk assessment, fraud detection, and other tasks. The document emphasizes the importance of data quality and having a holistic data strategy. It also stresses an iterative approach to AI development and increasing skills. An example use case describes using natural language processing models to assist underwriters by providing relevant risk expertise and intelligence from various data sources.
- Matteo Carbone is the founder of the Connected Insurance Observatory, which monitors insurance IoT developments. Over 45 organizations are members.
- Insurance IoT is about connecting insurance to people and risks using sensors to collect risk data and telematics to transmit the data for use in the insurance value chain (e.g. auto, health, property insurance).
- In Italy, telematics represents 16% of auto insurance contracts and 26 insurers offer telematics-based motor third party liability coverage. 65% of observatory members have seen a material impact of telematics on the auto insurance market.
This report looks at how digital platform companies and the ecosystems they are creating are reshaping customer experience expectations for insurers. It considers insurance carriers’ options for creating digital platforms and ecosystem strategies that will enable them to grow their relevance and market power in a changing world.
To read more, visit https://www.accenture.com/us-en/insight-emerging-insurance-ecosystem
Insurance carriers future competitive advantage will be determined not by their organization alone, but by the digital platforms and ecosystems they choose. Read more.
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of “must-have” elements for an insurer in order to deliver the promise of a smart home value proposition.
This document discusses how big data is impacting the insurance industry. It covers how insurers are using big data across the insurance value chain, from underwriting to pricing to claims management and fraud detection. Insurers are able to create more comprehensive customer profiles by combining internal and external data sources. This allows for more personalized insurance offerings and pricing models like usage-based insurance. The document also provides examples of insurers that are leveraging telematics data and innovative technologies to improve their business operations and customer experience.
The IoT Insurance Observatory is a four year old think tank specialized in insurance IoT
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.
Id insurance big data analytics whitepaper 20150527_lo resPrakash Kuttikatt
The document discusses how big data and analytics are disrupting the insurance industry. It provides background on the authors and describes the Australian insurance landscape, noting challenges like an aging population and increased natural disasters. It then discusses how big data is transforming the insurance value chain by enabling more accurate risk assessment and pricing through analysis of diverse new sources of data like telematics and social media. Insurers who leverage big data and analytics to gain insights and improve customer relationships will have a competitive advantage over those who do not adapt to this new digital environment.
Digital transformation is disrupting the insurance industry in three main ways: 1) Through hyper-personalized insurance products enabled by new data sources and customer data; 2) New competitors like insurtech companies and other industries entering insurance; 3) Emergence of new data sources and technologies that allow for new types of products and more customer-centered experiences. Insurers must leverage semantic graph technologies and data fabrics to integrate diverse new data sources, gain insights from data to develop new products and services, and remain competitive against new entrants.
This document discusses how adopting IoT can enhance insurance business operations. It outlines several ways IoT can impact the insurance industry, such as improving underwriting through access to more accurate customer data from wearables and sensors. IoT also enables better claims processing and loss prevention. However, expanding risk boundaries and gaining consumer adoption of connected devices present challenges to insurers adopting IoT. The objective is to define how new IoT data and technologies could shape innovation, operations, pricing strategies, and risk management in the insurance sector.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Vast new data streams create opportunities for insurers to identify and act upon hidden insights, but they also open the door for new business models and competitors.
Data-driven insights make it possible to create new products and new revenue streams, typically in partnership with players from outside the industry.
Harnessing external data is a complex undertaking, but insurers can start by developing a comprehensive plan and then undertaking specific, high-return initiatives that build momentum and help transform the enterprise into a winning competitor in the new digital arena.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Learn how external insurance data and analytics is changing everything, from pricing risk to interacting with customers. Read more: https://www.accenture.com/us-en/insight-harnessing-external-data-stream
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
The document discusses the key shifts underway in the insurance industry as it transitions to a digital model. Empowered consumers demanding personalized experiences, innovative competitors, and new technologies are driving insurers to move from a policy-centric model to one focused on the customer. Insurers must utilize data and analytics to develop new products that anticipate customer needs and can be purchased through any channel. They also need to build ecosystems of partners and modernize legacy systems to keep pace with these changes and remain competitive in the digital insurance landscape.
Etude PwC "Insurance 2020" : dommage et digital (2014)PwC France
http://bit.ly/AssuranceEnLigne
Pour les compagnies d’assurance, multiplier les échanges numériques avec les clients est un élément essentiel pour les fidéliser et se différencier des concurrents. C’est ce que révèle le rapport de PwC "Insurance 2020: The digital prize – Taking customer connection to a new level". Le cabinet d’audit et de conseil a interrogé plus de 9 000 consommateurs dans le monde, dont 500 français.
Disruptive Impact of Big Data Analytics on Insurance- Capgemini Australia Poi...dipak sahoo
The document discusses how big data and analytics are disrupting the insurance industry. It outlines that:
1) Insurers are now able to access vast new sources of data like social media, wearables, connected devices and more to better understand risks and strengthen customer relationships.
2) Technologies like telematics allow insurers to access real-time driver behavior data to more accurately price and manage risk.
3) Insurers must adopt a proactive, data-driven approach to predict events rather than just react, in order to remain competitive in this new environment of abundant data and advanced analytics.
Shaping the right strategy, managing thebiggest risk.Until recently, the Internet of Things (IoT) was on the strategic agenda of only the largest and most progressive insurers. The IoT was largely viewed as a futuristic concept, and many insurers adopted a “wait and see” attitude.
Id insurance big data analytics whitepaper 20150527_lo resPrakash Kuttikatt
1) The document discusses how big data and analytics can disrupt the insurance industry. It provides examples of how various parts of the insurance value chain can leverage big data, from underwriting and risk assessment to claims processing and fraud detection.
2) The insurance industry in Australia faces challenges like an aging population, natural disasters, and increasing digital disruption. Big data analytics can help insurers address these challenges by gaining deeper customer insights and improving processes.
3) New sources of data from sensors, wearables, connected devices, and social media can provide insurers with more accurate individual risk profiles and enable more customized products and pricing. This moves the industry from pooling risk to the "segment of one".
ID_Insurance Big Data Analytics whitepaper_ 20150527_lo resPrakash Kuttikatt
1) The document discusses how big data and analytics are disrupting the insurance industry. It provides examples of how data from sources like social media, wearables, connected devices and more can be used across the insurance value chain, from pricing to claims processing.
2) The insurance landscape in Australia is facing challenges like an aging population, natural disasters, and increasing digital disruption. However, big data presents opportunities to better understand customer risks and needs.
3) Early insurance industry adopters of big data are transforming their business through more personalized pricing, real-time policy management enabled by telematics, and predictive analytics. Organizations that effectively leverage data will have an advantage over competitors.
The rise of Fintech, changing consumer behavior, and advanced technologies are disrupting equally all the financial services industry, among which also it’s most prominent member, insurance
The insurance industry has been using data to calculate risks for years, still, with new technology now available to collect and analyze large volumes of data for patterns and better risk prediction and calculation, the value of understanding how to store and analyze it has grown exponentially (Liu et al., 2018).
Insurers are at their early stage of discovering the potential of big data, and multiple technology companies are investigate how to make value of such technology (Pisoni, 2020)
Global natural disasters have increased insured losses and highlighted gaps in risk coverage. Insurers are updating risk assessment models using AI and improved data to better understand emerging risks, price policies accurately, and help close coverage gaps. They are also leveraging AI to strengthen risk management through continuous risk assessment, real-time monitoring, and risk prevention initiatives to improve underwriting profitability and reduce losses. These strategies aim to make insurers more prepared for evolving risks and help create more awareness and optimal protection for policyholders.
As well synthesized by Meg Whitman (CEO at Hewlett-Packard) “we’re now living in an Idea Economy, where the ability to turn an idea into a new product or service has never been easier”. This impact is pervasive on all industries, any company has to achieve enough agility to respond to market opportunities and threats and quickly turn ideas into reality.
For some years now, the “digital”-driven projects have become a priority for all the Insurance Groups. Let me add that here the term “digital” refers to several important aspects starting with a digitalized customer experience, which is completed by digital/technological processes aimed at improving the relationship with the clients and with the mid-term objective of maximizing the single client’s profitability.
Insurers are beginning - and those who are not doing so should start – to give serious thought to how they can build their strategy to incorporate the IoT into the insurance value chain.
The Internet of Things (IoT) is “the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.” The most important factor in the IoT “equation” is the data – which is the main element providing value to the insurance company if harvested and analyzed in an adequate manner. In product development there should be a data collection & analysis approach embedded in the business model itself, otherwise the strategy will lack in bringing the desired added value. Having a “data mindset” in all the stages of the business will ensure that the implemented model will have the capacity to gather and analyze the high quantity of data provided by the interconnected devices and environments.
As Matteo Carbone who is an expert in the field says in his article, ultimately telematics is the integrated use of informatics and telecommunications; it is about registering, storing and analyzing data via telecommunication devices.
“Telematics could be one of the most relevant digital innovations in the insurance industry directly impacting the technical results. Due to the pervasive diffusion of the Internet of Everything, this approach could be extended from motor insurance to other insurance businesses.”
Insurance at the Intersection: Reinventing the Model, Repositioning the BrandCognizant
Insurers that can embrace the changing environment by redesigning their operating models and reinventing their business will be the most successful industry players of the future.
The document discusses 10 trends in the insurance industry in 2016. Technology startups are disrupting existing business models in the industry. Most trends are technology-related and have low market penetration currently but will see mainstream adoption in coming years. Trends like increased use of IoT, big data, entry of non-traditional firms, and mHealth apps will have significant impact on insurers and customers. Other trends like peer-to-peer insurance and cyber insurance will play a larger role in the future.
The document discusses how digitization is transforming the insurance industry. It is putting pressure on life/pensions and property/casualty insurers to improve customer experience through digital channels. Customers now expect seamless, personalized experiences through mobile and online access. Insurers need to leverage new technologies like analytics, cloud computing, and the internet of things to meet these rising expectations and compete in the digital era. Data and digitization offer opportunities to better understand customers, price policies dynamically, and automate processes, but insurers must also address challenges of security, regulation and building customer trust.
The Singapore FinTech Consortium - Introduction to InsurTechFinTech Consortium
When you hear of “insurance”, the words “innovation” and “technology” would not come to mind intuitively – but they should now. At this day and age, insurance technology has the potential to affect nearly every essential insurance function, ranging from distribution methods to actuarial number crunching. InsurTech is now being implemented across every stage of the insurance value chain.
InsurTech 2016 Conference is a global gathering of the world's leading thinkers and doers in Insurance innovations and technology. It's a gathering of the planet's businesses, large and small, who are being impacted by new innovations to want to meet the demands of the insurance market.
This year, over 300 attendees will make the trip from all corners of the globe to hear from 80 industry thought leaders who will deliver the knowledge you're looking for to succeed in this arena.
InsurTech 2016 will assure that you meet the top insurance and technology professionals - leading 22 interactive and insightful sessions across all the insurtech spectrum, including:
Digital distribution channel
Blockchain
Data Analytics
Wealth Management
IoT & Telematics
Auto Tech
Health Tech & Wearables
Book your delegate ticket now for additional 15% Discount @ http://bit.ly/2bmXVxG
everis 2016 InsurTech study - executive summaryDirk Croenen
everis comprehensive InsurTech study and the role of tech giants, insurance companies & startups. It's all about transforming client's experiences and implementing new disruptive business models, NOT about integrating new tech into existing organizations!
Ähnlich wie Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem (20)
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
Data Modernization: Breaking the AI Vicious Cycle for Superior Decision-makingCognizant
The document discusses how most companies are not fully leveraging artificial intelligence (AI) and data for decision-making. It finds that only 20% of companies are "leaders" in using AI for decisions, while the remaining 80% are stuck in a "vicious cycle" of not understanding AI's potential, having low trust in AI, and limited adoption. Leaders use more sophisticated verification of AI decisions and a wider range of AI technologies beyond chatbots. The document provides recommendations for breaking the vicious cycle, including appointing AI champions, starting with specific high-impact decisions, and institutionalizing continuous learning about AI advances.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is becoming a key strategy for technology companies as they shift to cloud-based subscription models. This requires building an "experience ecosystem" that breaks down silos and involves partners. Building such an ecosystem involves adopting a cross-functional approach to experience, making experience data-driven to generate insights, and creating platforms to enable connected selling between companies and partners.
Intuition is not a mystery but rather a mechanistic process based on accumulated experience. Leading businesses are engineering intuition into their organizations by harnessing machine learning software, massive cloud processing power, huge amounts of data, and design thinking in experiences. This allows them to anticipate and act with speed and insight, improving decision making through data-driven insights and acting as if on intuition.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
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Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
1. Digital Business
Catching the Consumer Data
Wave: A New Opportunity in the
Insurance Ecosystem
With the profusion of insurance consumer data coming online, the role
of data intermediaries is emerging as a key player in the insurance
ecosystem. Insurance distributors are especially well-suited to take the
lead in analyzing user data and sharing insights to drive innovative
product offerings and growth.
Executive Summary
The eruption of customer wellness and activity data
captured by wearables, lifestyle apps and other digital
platforms presents a tipping point for the insurance
industry. Today’s digital generation expects brands to
use consensual data to enhance their experience by
offering more personalized services and offerings. The
insurance industry is at the cusp of disruption, driven
by a combination of nimble start-ups using emerging
technologies and new data sources to serve evolving
customer preferences. This is pressuring insurers to
change how they approach product design, pricing and
distribution in ways that leverage all available data.
February 2019
Cognizant 20-20 Insights
2. 2 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Cognizant 20-20 Insights
Yet, most insurers are unprepared to access and
use this data to offer personalization, based on
individual risk assessments or anonymized profiles,
and support customers through their various
insurance needs and policy lifecycle. Moreover,
insurers are not equipped to receive and analyze
incoming data flows from myriad digital platforms.
Likewise, device manufacturers are ill-equipped to
share user data directly with the myriad of insurers
across geographies.
This predicament presents an opportunity for
a new player in the insurance ecosystem: the
data intermediary. With a focus on the Asia-
Pacific region, in this white paper we examine the
underlying forces causing this data dilemma and
the need for an investment in creating a common
data-warehousing platform ideally positioned
between the data receiver, such as a wearables
manufacturer, and the insurer. We posit that a
distributer-driven platform should analyze the data
and share insights to help all stakeholders across
the ecosystem enhance their services and offers,
thus providing new growth opportunities.
Insurers would benefit in many ways as they
improve the risk profiles of customers, delight them
in new ways, enhance product innovation and reap
economic advantages through more targeted
spending and claims efficiency. This new ecosystem
would create growth opportunities industry-wide
as it accelerates the insurer’s journey toward real-
time underwriting and loyal customer renewals.
Such a distributor-driven ecosystem would require
effective collaboration among insurers, policy
makers, regulators and cybersecurity experts to
ensure a robust framework — one that benefits
customers and protects data privacy rights. We
also explore the possible challenges, focusing on
the evolving regulatory landscape in particular, and
envision a way forward for the industry.
3. Cognizant 20-20 Insights
3 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Four forces driving the data dilemma
Throughout the Asia-Pacific region, the insurance
industry faces data headwinds — all brought on by
changes in consumer behavior and technology
adoption. The four forces most significant to
insurers are:
❙❙ Explosion of digital data: Data monetization
will become a major source of revenue for
insurers, as the world creates 175 trillion
gigabytes (175 zettabytes) by 2025, up from 33
zettabytes in 2018, according to IDC.1
❙❙ Increased wearables adoption: Consumers are
increasingly adopting gadgets and connected
devices to monitor activity and behaviors. In
emerging markets, inclusive of Asia-Pacific
(excluding Japan), the wearables market grew
14% in 2018,2
as basic wristbands remain in high
demand and smartwatches gain traction across
the region.
❙❙ Expected personalization: Today’s consumers
receive personalized offers and customized
solutions across many product categories, and
insurance shouldn’t be an exception. Insurance
customers lack a variety of policy options that
account for their lifestyle choices, general health,
and social and financial behaviors. This is where
technology can play a leading role. Southeast
Asia is fast embracing digital innovation spurred
by the Internet of Things (IoT) and smartphone
adoption. China is home to many dynamic digital
innovators and a leading investor in emerging
technologies.3
Singapore has its Smart Nation
initiative.4
Malaysia launched the world’s first
digital free-trade zone.5
Thailand has outlined
its Thailand 4.0 vision that aims for greater
economic prosperity through innovation,
technology and creativity.6
All combined, this
region presents fertile ground to create a new
insurance ecosystem to capture, mine and act
on this massive data trove to offer a deeper
view of consumers as they gravitate to online
insurance and request more personalization.
Figure 1
Drivers for data monetization
CUSTOMER
PERSONALIZATION
Customers expect
a personalized
insurance product that
reflects health, social
and usage behaviors.
WEARABLES
UPTAKE
In APAC, the wearables
market grew 14% in
2018, and global
shipments are
expected to exceed
450 million in 2020.
INSURERS
GO DIGITAL
Insurers leverage
massive data for
advanced analytics
and machine learning.
DIGITAL DATA
EXPLOSION
Data monetization
becomes a key revenue
driver, as the world
creates 175 trillion
gigabytes by 2025.
4. Cognizant 20-20 Insights
4 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
❙❙ Insurers go digital: In China, online insurance
sales of life and non-life products are expected
to hit $145 billion by 20217
— up from $45 billion
in 2016. Online insurers and conglomerates,
such as Baidu, Alibaba and Tencent, are
investing in technology, joint ventures and
acquisitions to strategically expand their
insurance industry footprint. Insurers recognize
the need to take advantage of this wealth of data
to support personalized services based on real-
time customer profile/behavior/habits to launch
new and innovative product segments, such
as on-demand insurance that targets next-gen
customers, and to satisfy customer desires
for faster, more proactive communication
and service.
The predicament created by these forces presents
a timely opportunity for a new breed of data
intermediaries that can help insurers by collecting
and analyzing data spread across the insurance
ecosystem and ferreting out intelligent insights to
offer as a service. By leveraging technology across
the value chain and partnering with organizations
such as automobile companies, smart home
appliance manufacturers and gadget/wearable
manufacturers, insurers can create a more
data-driven industry ecosystem that enables real-
time underwriting, customized policies, smarter
distribution, better service and faster claims
resolution while also optimizing costs. Similar to
the way the cab-hailing industry has transformed
through intelligent use of customer data, a data
intermediary with actionable insights based on
various data sources has the potential to redefine
the insurance landscape.
Figure 2
Customer journey map: current state
Liu Wang is a 30
year old fitness
enthusiast. He is
looking for a
fitness band
(including the
associated app
features) to
track his vital
health stats.
He checks out
reviews and
features of
different health
apps/wearables
and purchases
one.
He starts
tracking fitness
parameters
using the
wearable device.
Liu’s colleague
suggests he
purchase a
health insurance
policy to
manage
unplanned
health and
medical
expenses.
Liu searches
for a health
insurance plan
through various
aggregator sites.
Liu does not
understand
most of the
insurance
comparison
parameters
listed on the
aggregator sites,
but selects one
of them anyway.
Liu schedules
a health
check-up at the
designated
hospital and
completes the
policy admin
process to
become
insured.
After one year,
Liu is ready to
renew the policy
and despite
maintaining an
active lifestyle,
the renewal
quote doesn’t
account for it.
The quotes do
not reflect my
actual health
parameters.
It would have
been good if the
health data
tracked could be
used to minimize
the tests needed
in the health
check-up.
I have been exercising
and improving my
health, but I don’t
see any quantifiable
financial wellness
benefits.
POLICY
AGGREGATOR
SITE INSURER
5. Cognizant 20-20 Insights
5 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Who should act as data intermediary?
The insurance industry ecosystem includes many
types of players, but only the most qualified candi-
dates should assume the role of data intermediary.
Many insurers are keen to use insights from the
data provided by external digital platforms but
would rather not invest in the skills and resources
to create an in-house system that would process all
the consumer data residing in various systems and
data marts outside their business.8
In addition, some
large insurers, due to their inherent size and legacy
systems, might find it difficult to adopt emerging
technologies and new processes.9
Nonetheless,
insurers aspire to innovate around wearables data,
as a few companies are running tests by providing a
subset of customers with wearables. However, they
recognize that the sample data is not representative
of all customers and a broader rollout would likely be
cost-prohibitive.
While any entity that has wide access to data can
provide a data intermediary service, we believe that
a distribution system that intermediates between
the customer and insurer, such as a large brokerage
firm or a national distribution channels, and has
access to various data sources can more readily
step into the data intermediary role.
Distributors interested in assuming this role
should exploit the opportunity by enhancing their
digital capabilities to meet the evolving needs of
customers. This sentiment is shared by customers
and insurers alike, who want brokers to invest in
digital platforms, more clearly demonstrate the
many ways they add value, and offer more analytics,
marketing and sales services.10
Distributors can
leverage the available treasure trove of data to foray
into new areas such as market research, playing the
role of a data and intelligence provider to insurers
and other consulting firms.
Figure 3
The distributor’s edge
Insurer Distributor IoT/Wearable Manufacturer
Investment in people with niche skill
sets to manage this platform (e.g.,
data scientist) will not be optimal
from a financial standpoint.
Distributors have a broader view
of the market and the right kind of
relationship with multiple insurers
that can be leveraged to create a
strong workforce.
Wearable/IoT device manufac-
turers will suffer from lack of
alignment with their strategic
objective of providing the wellness
benefit viz. playing the role of a
data provider.
Insurer will have access to a
smaller group of customers who
are prospective insureds or online
visitors.
Distributors are well connected
with the insurers and have the
confidence of customers as their
trusted partner, which will enable
economies of scale.
Wearable/IoT device manufacturers
are not a part of the insurance value
chain, and collecting data from
other wearable manufacturers
would be a challenge.
Insurers’ systems are driven
by legacy technologies, and
moving from legacy to next-gen
technologies requires a sizeable
investment.
Distributors have the potential
to invest in a new platform that
manages the data inflow from
various customers and provides
meaningful insights to insurers.
Not applicable. (Lack of alignment
with their strategic goals.)
PeopleAlignmentProspectReachTechnology
Rating
6. Cognizant 20-20 Insights
6 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Emerging examples of progress
Access to data, however, isn’t enough. Distributors
will need to apply analytics and artificial intelligence
to provide insurers and customers with more
timely and relevant information and insights.
Digital insurer ZhongAn in China is addressing
this need though its Intelligent Open Platform
for insurers. ZhongAn, a digital venture of insurer
PingAn and online giants Tencent and Alibaba,
identified an opportunity to aggregate and analyze
data on medical insurance directories, drug
databases and hospital networks. The resulting
SaaS platform11
offers access to medical records,
an insurance repository and risk management
services. Developed initially for Chinese property
and casualty insurer Axa Tianping, the ZhongAn
platform is now being used by more than 10
insurers, demonstrating strong market demand
for such services. This platform, while beneficial,
doesn’t yet cover personalized consumer data,
such as health and social, and traditional large
insurers generally don’t have the digital capability
or agility to aggregate such data at large scale.
Another example of progress is Wukongbao,12
a
provider of online business products and services,
which provides a data-mining API that connects to
more than 5,000 third-party platforms, including
travel, auto and health apps. It identifies user-
behavior patterns insurers can use to tailor and
market insurance policies.
The proposed ecosystem should be owned
by a consumer-data intermediary that directly
and indirectly benefits from the currency of this
ecosystem (see Figure 4).
Access to data, however, isn’t enough. Distributors will need to
apply analytics and artificial intelligence to provide insurers and
customers with more timely and relevant information and insights.
Figure 4
The insurance data ecosystem
OWNERS OF THE ECOSYSTEM
Insurers, wearable manufacturers,
providers of wellness as a service
Prospective insureds Risk/credit history and rating
Data
Intermediaries
Data
Providers
Data
Producers
Data
Consumers
7. Cognizant 20-20 Insights
7 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
The data intermediary would securely handle data
as it acts as a repository and distributor of on-
demand services to insurers. This new ecosystem
would enable insurers to offer customers device-
agnostic, customized products, rather than link
offers to specific fitness band brands or telematics
devices that might hinder interest and usage.
Customers should be free to use their preferred
device no matter what insurance policy they
choose. Global data service providers, such as
LexisNexis, Acxiom, and ISO Verisk Analytics, and
insurers, such as Aviva,13
are starting to leverage this
data to determine risk profiles rather than review
medical tests. In China, insurer Allianz has launched
Xinkaishi,14
a fetal listening and maternity app, to
cross-sell health and life insurance to expectant
mothers. AXA, Alibaba and Ant Financial Services
have partnered to co-innovate and develop tailored
insurance products for specific segments of
Alibaba’s customer base.15
This new ecosystem would enable insurers to offer customers
device-agnostic, customized products, rather than link offers to
specific fitness band brands or telematics devices that might hinder
interest and usage. Customers should be free to use their preferred
device no matter what insurance policy they choose.
Figure 5
Role of distributor in proposed ecosystem
Role of distributor-intermediary
in proposed ecosystem
Continuous Customer
Engagement
• Improve customer
engagement throughout
the policy lifecycle
by monitoring stats to
ensure customers
become eligible to get the
appropriate benefits.
• Effectively play the role of
a trusted partner to the
customer throughout the
policy lifecycle.
Improve Customer
Risk Profiling
• Enable insurers to
engage with the customer
at an early stage of policy
lifecycle to ensure
increased customer focus
and effective risk profiling.
• Offer service through a
membership subscription.
Leverage Industry
Knowledge
• Insurers customize
offerings by using critical
insights about the
customer.
• Customers make more
informed decisions at the
time of policy selection.
Foster Innovation in
Product Design
• Insurers fine-tune
product catalog based on
evolving customer needs
and changing market
trends.
Provide Data as a
Service (DaaS)
• Distributors leverage data
from various sources to
extract meaningful
insights on purchase
patterns, demographic
profiles.
• Insights used by insurers
and device manufacturers
to customize product
strategy aimed to achieve
topline growth.
8. Cognizant 20-20 Insights
8 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Future view
We believe the industry needs a further-consolidated
view of broader data — such as customer behavior,
social, financial and risk data — from various
providers, a gap well suited for the data intermediary.
This connected, digital, data-driven insurance
ecosystem would then enable a seamless flow of a
wider range of insight among the various parties. As
a data gatekeeper, the intermediary would maintain
this data-warehousing platform through which all
user data would be shared with the various insurers.
We envision a mutually beneficial distributor-driven
network that unites customers, distributors and
insurers. Figure 6 illustrates a future scenario where
distributors play a central role to create and manage
the platform using healthtech data as an example.
Resetting a digital customer journey
With a data intermediary at the center of the
ecosystem, a new customer journey will unfold,
enabling insurers to offer the more personalized
Figure 6
Creating a distributor app ecosystem
PORTAL FUNCTIONALITY
DISTRIBUTOR APP —
Data Insights & Features for Customers and Insurers
Integration with
Distributor App to
Provide Insights
STAKEHOLDERS Customers Distributors Insurers
Health Tracking
• Monitor vital stats from wearables
• Track health-related expenses
• Gamification incentive
Customized Insurance
• Wearable data shared to customize policy
• Quotes from various insurers
• Servicing, advice and periodic support
Distributor Value Add
• Digital connect to customer
• Upgrade underwriting by leveraging the wearables data
• Provide insights to insurers
DATA SOURCES
& PARTNERS
Health Data
Risk Data
Credit Score
Social Data
INTEGRATION AND SECURITY
DATA
WAREHOUSE
& ANALYTICAL
ENGINE
Wearables
Data
Insurers Underwriting
(Risk Management
and Rating)
Service Provider
Data
Gamification
Partners
Risk Score —
TP Analytics
9. Cognizant 20-20 Insights
9 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
products customers desire. When shopping for a
new insurance policy, today’s customer navigates
through an array of distribution channels, including
agents, brokers, aggregator sites and direct sales.
Because product searches cannot be tailored
to distinctly personal needs, customers receive
a myopic view of the vast array of products and
features available. Further, insurers have limited
access to customer data, rendering them unable to
classify risk at a granular level to offer customized
products and differential pricing. For example,
insurers are unable to incentivize preferred-risk
(healthy) customers over standard-risk customers.
In the future state, through a distributor app,
insurers could access vital information to help them
profile prospects based on current health status.
Policy providers would improve risk management
as they gain a better understanding of general
health-profile trends. This access and knowledge
could accelerate the coming of real-time
underwriting. Throughout the customer journey,
the distributor app would serve as a trusted advisor
as it supports the insured as they traverse the
policy lifecycle. Figure 7 shares a view of this
future journey.
Figure 7
Customer journey map: future state
Liu Wang is a 30
year old fitness
enthusiast. He is
looking for a
fitness band
(including the
associated app
features) to
track his vital
health stats.
He checks out
reviews and
features of
different health
apps/wearables
and purchases
one.
He starts
tracking fitness
parameters
using the
wearable device.
Liu’s colleague
suggests he
purchase a
health insurance
policy to
manage
unplanned
health and
medical
expenses.
Liu searches
for a provider
that offers a
customized
policy using
wearable data.
Liu finds the
distributor’s
app, installs
it and grants
permission to
access his
wearable data.
Liu enters
the desired
coverage,
premium range
and basic details
on the app.
Customized
quotes from
various insurers
meeting his
requirements
are shown.
Liu now
completes the
policy admin
process in the
app, becomes
an insured and
shares health
stats from the
app directly.
After one year,
Liu is ready to
renew the
policy. He gets
wellness
benefits based
on improve-
ment of health
stats due to the
active lifestyle
he maintains.
The distributor app
recommends the
best insurer while I
focus on my health.
I just have to share
my wearable data
with the distributor
rather than with
each insurer. It’s very
convenient.
I have a
customized quote
that reflects my
actual health.
I have been
exercising and
maintaining my health.
I am getting desired
wellness benefits from
my insurer.
DISTRIBUTOR INSURER &
DISTRIBUTOR
INSURER &
DISTRIBUTOR
INSURER &
DISTRIBUTOR
10. Cognizant 20-20 Insights
10 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Benefits to insurers
Insurers have much to gain through this new
ecosystem, as they create more targeted product
offerings that accurately reflect coverage needs. As
data insights increase, so advances the evolution of
underwriting capabilities. Low performing products
can be dropped and more targeted advertising
and marketing campaigns applied, which can
increase profitability and improve the overall claims
ratio. Here’s how we envision insurers benefitting
through the new ecosystem:
❙❙ Customer experience
➢➢ Offer customized services based on wearables data.
➢➢ Allow for continuous monitoring.
➢➢ Provide wellness as a value-added service.
➢➢ Earn greater customer trust though higher transparency.
❙❙ Risk profile
➢➢ Receive real-time data for greater consistency.
➢➢ Improve risk-assessment quality when profiling
prospects.
❙❙ Product design
➢➢ More effectively calibrate the underwriting system
and accelerate the move to real-time underwriting.
➢➢ Customize the insurer roadmap based on
evolving needs.
❙❙ Bottom line
➢➢ Improve combined ratio and reduce claims losses
through policies based on real-time data.
➢➢ Increase revenue through higher conversions due to
targeting and customization.
➢➢ Improve claims efficiency with more preferred-class
policyholders.
➢➢ Improve underwriting efficiency.
➢➢ Optimize advertising and market research spend.
Regulatory challenges
As the insurance industry embraces insurtech,
the scenario presented in Figure 8 (page 11)
shares a view of the many potential data security
issues. Insurers, policy makers, regulators and
cybersecurity experts must collaborate to build a
robust governing framework — one that protects
customers’ data privacy rights.
Across the Asia-Pacific region, lawmakers are
creating comprehensive data privacy laws similar to
the EU’s Global Data Privacy Regulations (GDPR),
adopted in 2018. The Chinese Personal Information
Security Specification law dictates basic rules
of consent, cross-border data transmission and
secondary uses of personal data. It also provides an
overarching framework for data collection, storage
and transfer. Other regions have similar data
protection laws, such as the Singapore Personal
Data Protection Act of 2012 (PDPA) and the Taiwan
Personal Data Protection Law.
Greater collaboration and transparency among
government bodies, regulators, insurers, data
processors and customers will ensure a mutually
11. Cognizant 20-20 Insights
11 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
beneficial ecosystem. Through anonymized data,
processors can still gain valuable insights into
customer traits and behaviors without violating
regional data privacy laws.
As they abide by strict customer privacy laws,
gadget manufacturers, data intermediaries
and insurers will secure higher customer trust.
VitalityHealth, which includes partners such as Ping
in China and AIA in Singapore and Australia, has
demonstrated that, with transparent policies and
pricing, customers will consent to providing their
health data. With this data access, VitalityHealth
reduced lapsed policies by 52% among their most
active program participants.16
A call for industry action
The proposed ecosystem must account for how
data would be managed and the integrity with
which it is handled. With a distributor at the center
properly playing its data management role, insurers
should be willing to share their consent-granted
customer data to enhance the richness of the
insights. To ensure ecosystem success, insurers
should enable the distributor to leverage the power
of this aggregated customer data and bring greater
value to all participants, especially customers.
Distributors should explore the potential changes
required to their business models, operations and
technologies to serve in this new capacity.
The insurance industry is facing a major shift in
market dynamics due to advancing customer
expectations, the rise of connected devices and
the emergence of insurtechs. These developments
are forcing insurers to revamp their product
propositions to stay relevant and compete with
greater intelligence. The data eruption from digital
platforms presents an ideal opportunity for the
industry players to unite around a data intermediary
approach to explore new ways to capture, act on
and monetize this information, all for the sake of
providing a better customer experience.
Figure 8
Challenges to the ecosystem
REGULATORY CONSTRAINTS
• Insurers restricted from providing premium discounts based
on aggregated data (e.g., healthtech) in some countries.
• Insurers must have customer consent to use data for analysis.
DATA PRIVACY
• Ensure anonymity of customer data for any research,
such as trend analysis, and data mining activities.
• Ensure compliance to global data privacy regulations,
such as GDPR and PDPA.
• Obtain customer consent to share personal data.
DATA MATURITY
• Consistently receive data from all customers and stakeholders.
• Accommodate insurers’ need for massive data for maturity
tables as a part of underwriting-engine calibration.
• Ensure data authenticity from connected devices.
• Progressive movement toward real-time underwriting.
DATA SECURITY
• Mask data of prospective insureds as it’s shared with the
insurers for quote generation.
12. Cognizant 20-20 Insights
12 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
About the authors
Srinivasan Somasundaram
Senior Director, Insurance Practice, Cognizant Consulting
Srinivasan Somasundaram is a Senior Director within Cognizant Consulting’s Insurance Practice. He has
more than 20 years of experience in the life, annuity and pension sectors. Srini’s experience includes
program delivery, developing business propositions, go-to-market and large-deal support. He has worked
on projects in the UK, U.S., South Africa and the Asia-Pacific region, with a focus on sales and distribution.
Srini holds a post-graduate degree in management from Bharathithasan University. He can be reached at
Srinivasan.Somasundaram@cognizant.com | http://in.linkedin.com/pub/srinivasan-somasundaram/0/
a5a/156.
Prem Srinivas Sriram
Guidewire Product Consultant, Insurance Practice, Cognizant Consulting
Prem Srinivas Sriram is a Guidewire Product Consultant within Cognizant’s Insurance Practice. He has
nine years of experience in product, functional, solution and technical consulting for major property and
casualty insurance clients across the U.S. and Europe. Prem has completed his PGPM from Great Lakes
Institute of Management, Chennai, with certifications in AINS, AIC and CSPO. He can be reached at Prem.
Srinivas@cognizant.com | www.linkedin.com/in/prem-srinivas-sriram-aic-ains-ais-cspo-32b5b218.
Santhosh Kumar S
Manager, Business Development Team, Insurance Practice, Cognizant Consulting
Santhosh Kumar S is a Manager with the Business Development Team within the Cognizant Insurance
Practice. He has more than nine years of IT experience working on multiple opportunities for life and
property and casualty insurers in the Asia-Pacific region, in the areas of business analysis, business process
consulting and digital transformation. Santhosh has completed his PGPM from Great Lakes Institute
of Management in Chennai, with certifications in FLMI and CSPO. He can be reached at Santhosh.
Kumars3@cognizant.com | www.linkedin.com/in/santhosh-kumar-swayam-prakash-13ba5056/.
13. Cognizant 20-20 Insights
13 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Vinay Alexander
Senior Consultant, Insurance Practice, Cognizant Consulting
Vinay Alexander is a Senior Consultant within Cognizant Consulting’s Insurance Practice. A certified AINS
professional, he has nine years of experience working with multiple property and casualty insurers and
brokers across Europe and North America in IT product development, functional implementation, business
analysis, business process consulting and digital transformation. Vinay received a PGPM in marketing
and sales from Great Lakes Institute of Management, Chennai. He can be reached at Vinay.Alexander@
cognizant.com | www.linkedin.com/in/vinay-alexander-830301bb/.
Manikandan Sankaran
Consultant, Insurance Practice, Cognizant Consulting
Manikandan Sankaran is a Consultant within Cognizant Consulting’s Insurance Practice. He has more
than four years of consulting experience across the insurance value chain working with insurers and
brokers across the U.S., UK, Middle East and Asia-Pacific regions, with expertise in business analysis and
digital transformation, and a passion for emerging technology. Manikandan holds a post-graduate degree
in management from the Indian Institute of Management, Indore. He can be reached at Manikandan.
Sankaran2@cognizant.com | www.linkedin.com/in/manikandan243.
14. Cognizant 20-20 Insights
14 / Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Endnotes
1 David Reinsel, John Gantz, John Rydning, “The Digitization of the World – From Edge to Core,” IDC and Seagate,
November 2018, www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf.
2 “Worldwide Wearables Market Ticks Up 5.5% Due to Gains in Emerging Markets, Says IDC,” Sept. 4, 2018, IDC press
release, www.idc.com/getdoc.jsp?containerId=prUS44247418.
3 Kevin Wei Wang, Jonathan Woetzel, Jeongmin Seong, James Manyika, Michael Chui, Wendy Wong, “Digital China:
Powering the economy to global competitiveness,” McKinsey Global Institute, December 2017, www.mckinsey.com/
featured-insights/china/digital-china-powering-the-economy-to-global-competitiveness.
4 “What Is Smart Nation – Initiatives,” Smart Nation Singapore, www.smartnation.sg/what-is-smart-nation/initiatives.
5 Digital Free Trade Zone (DFTZ), Malaysia External Trade Development Corporation, www.matrade.gov.my/en/digital-
free-trade-zone-dftz.
6 What Is Thailand 4.0?, https://thaiembdc.org/thailand-4-0-2/.
7 “How Tencent and Ant Financial Are Rushing Into China’s Insurance Industry,” CBInsights, Oct. 23, 2017, www.cbinsights.
com/research/baidu-alibaba-tencent-insurance/.
8 Elinor Friedman, Andrew Harley, Klayton Southwood, “Insurance big data — float like a butterfly, sting like a bee,” Willis
Towers Watson, August 2016, www.towerswatson.com/en/Insights/Newsletters/Global/Emphasis/2016/emphasis-2016-
2-insurance-big-data-can-improve-business.
9 Karl Flinders, “Insurers face same legacy system battle as retail banks,” Computer Weekly, Nov. 1, 2016,
www.computerweekly.com/news/450402096/Insurers-face-same-legacy-system-battle-as-retail-banks.
10 Trevor Lloyd-Jones, “With Digital Disruption Will Insurance Brokers Adapt or Die?” LexisNexis Insurance Insights,
http://blogs.lexisnexis.com/insurance-insights/2016/12/with-digital-disruption-will-insurance-brokers-adapt-or-die/.
11 “ZhongAn Technology Launches AI-Powered Data Platform for China’s Insurance Industry,” Fintech News Hong Kong,
Aug. 14, 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/.
12 Ibid.
13 Finbarr Toesland, “Insurance moves from reactive to predictive,” Raconteur, April 26, 2018, www.raconteur.net/risk-
management/insurance-moves-reactive-predictive.
14 China In-Depth: China Insurtech Review – May 2017, The Digital Insurer, www.the-digital-insurer.com/china-in-depth-
china-insurtech-review-may-2017/.
15 Hugh Terry, “AXA, Alibaba and Ant Financial – New ecosystem,” The Digital Insurer, www.the-digital-insurer.com/dia/axa-
alibaba-and-ant-financial-new-ecosystem-under-development/.
16 Matthew Nitkoski, “Defending China’s Data,” China Business Review, October 2, 2018, www.chinabusinessreview.com/
defending-chinas-data/.