I speak often with clients about the role of technology in insurance. Of the many innovations we discuss, connected insurance may be the most polarizing. Connected insurance (CI) is nascent across most insurance lines. But evolving consumer preferences and increasing competition from digital-first startups require forward-thinking insurers to harness emerging technology and invest in CI capabilities. We’re past hype. Consumers, insurers, and regulators all see CI’s value and potential.
The Business Case For Connected Insurance
Connected insurance provides a means for digitalizing how your customers engage with you. It can also help you drive higher revenues, lower costs, and improve conversion. As insurers look for opportunities to innovate, connected insurance promises bespoke solutions that digitize customers’ buying journeys, from purchase decision to claims initiation. Furthermore, connected insurance can automate workflows like underwriting and claims handling.
Connected Insurance Brings Opportunity, But Be Mindful Of Constraints
Customer focus and business strategy will determine how and where CI fits within your product portfolio. As you chart your path, you must develop competencies in data, internet of things, and machine learning. Deploying a CI strategy will help you engage more frequently with customers, expand the products and services you offer them, settle their claims faster, help them avoid loss, and live safer lives. But before you get to widespread adoption, you’ll have to clear some hurdles like data security and privacy protection, cyber threats, and AI ethics and transparency.
Next Steps: Your Connected Insurance Journey Begins Now
The velocity of change in insurance is only going to increase. Insurers must create new products and services that improve customer and agent experiences, increase operating efficiency, reduce costs, and drive business growth. Connected insurance offers a way to meet these goals. If you’re interested in learning more about how to begin, Forrester clients can access my recent report on connected insurance here or schedule an inquiry. For nonclients, if you want to keep this conversation going and learn more about my research and how we can help you build your connected insurance strategy, please visit us here. Take care.