IoT Plans and Priorities from Core Systems Vendors: Personal and Commercial Auto
Celent has released a new report titled IoT Plans and Priorities from Core Systems Vendors: Personal and Commercial Auto. The report was written by Juan Mazzini, a senior analyst with Celent's Insurance practice.
Internet of Things (IoT) is no longer a prediction; it is a reality. It could help insurers achieve many long-time desires such as personalizing products on a large scale, moving the focus from indemnity to prevention, and being a source of real innovation in terms of service and business models. IoT delivers a huge mass of data that needs to be integrated and processed by core systems. Celent looks into what vendors of these systems are doing about it for the auto line of business.
Core system vendors are deeply involved with the IoT. Fifty-nine percent of them either have IoT fully integrated into their product offering today or are running pilots. Medium and large vendors are leading the way in terms of IoT investment. Regardless of size, claims is the area where vendors believe there is more value, followed by product development/management and policy service. For core system vendors, IoT is becoming an integral part of their solution and service offering. Vendors are using a combination of models to deliver IoT as part of their solutions, though focusing the efforts through their product management and innovation units are the preferred methods.
“Core system vendors should expect to see their R&D budget increase. Core systems were getting complex enough without having IoT in the picture. Now it’s going to get extremely complex and costly if you want to continue to be a relevant player,” commentedMazzini.
“IoT comes along with a myriad of emerging technologies and trends that need to be blended into the R&D efforts. Celent has mapped around 46 emerging technologies in P&C alone," he added.