2016 Sensor Data Survey: disrupt or be disrupted
Insurers who move quickly to leverage new data sources, such as wearable tech and sensors, gain enormous potential to disrupt their competition.
To disrupt or to be disrupted?
That is the question insurers must address if they are to make the once-futuristic concepts in telematics, wearable tech and real-time risk underwriting into here-and-now operational capabilities. There are clear and compelling opportunities for insurers to re-engineer the fundamental value proposition to customers through transformative product innovation.
The impacts are fascinating to consider and offer huge upside for insurers who move quickly:
- Direct, unmediated customer relationships may soon become the rule thanks to direct access to objective and unfiltered data provided directly by customers.
- Precise individualized offers will replace generic segmenting and rudimentary targeting.
- “Downselling” may become as common as upselling – with insurers able to optimize the customer base for profitability and risk based on 1-to-1 insights.
- Some insurers will be well-positioned to offer services that promote healthier and safer living through the use of wearable or sensor technology.
- New data will enable senior management to balance customer-centricity with competing imperatives, such as product innovation and bottom-line metrics.
Insurers are lagging in three critical areas
We surveyed executives from nearly 2,000 organizations across seven industries in 20 countries to understand the impacts of sensor data.
Our findings confirm that insurers lag considerably behind their counterparts in other sectors.
Four imperatives for insurers
- Accountability and added value are top priorities for consumers to share personally identifiable information (PII).
- Insurers are more reliant on self-reported customer data than any other sector, and they lag badly in collaborating with customers and using insights to create value for customers.
- Leaders see 3x more opportunity to leverage sensor and other new data.
- Data-driven leaders are vastly better at using analytics to understand who their customers are, what they do, what they think about and how they change over time.
How insurers can improve performance across the enterprise
- Assessing risks more precisely and confidently
- Designing products faster and pricing them more profitably
- Strengthening customer bonds based on greater visibility into their changing needs
- Enhancing claims and service experiences
- Optimizing the overall customer mix
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