Celent has released a new report titled Are Asia-Pacific Insurers Ready for the Internet of Things? And Should They Be? The report was written by Wenli Yuan, senior analyst in Celent’s Asian Financial Services practice.

Based on a survey of Celent’s Asia Insurance Research Panel, this report focuses on uses of the Internet of Things (IoT) by insurers in Asia.

The majority of insurers will be fully capable of providing insurer-supplied networked sensors, storing and accessing telematics data, and analyzing and modeling data within three years.

Currently, IoT technology is delivering little or no value. But in five years, the IoT will deliver a good deal of value to all key insurance processes, especially in claims, product development and product management, and distribution.

Currently, IoT activities are concentrated on personal auto, individual life, homeowners, commercial auto, and individual health insurance. Five years from now, more than half of insurers believe that the IoT will be fully integrated into their product offerings in personal auto, homeowners, individual health, group health, commercial property, individual life, commercial auto, and workers’ compensation business.

“Many insurers are currently implementing pilot projects, but many others are still in a watchful, waiting mode. Insurers believe that the Internet of Things will make a significant difference in how they do business. Moreover, they see this occurring within the next five years,” says Yuan.