How leading commercial building insurers are using innovative IoT solutions to reduce risk, lower premiums and develop collaborative partnerships with their clients.
Optimizing the Internet of Things: Key Strategies for Commercial InsurersCognizant
The Internet of Things (IoT) is having a significant effect on both consumer-facing and commercial enterprises. At the consumer level, this can be seen in the increasing number of sensor-based smart devices flooding the marketplace. Yet the biggest economic impact is in the industrial and service-based segments, including commercial insurance. By aligning their business requirements with the capabilities of the Internet of Things, insurers can sharpen operational efficiencies, open new revenue streams, drive profitable growth and keep customers close.
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.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
Let's demystify the IoT insurance fake news.
Lesson learned through the work with more than 100 insurers, reinsurers and tech players in 15 different countries.
Optimizing the Internet of Things: Key Strategies for Commercial InsurersCognizant
The Internet of Things (IoT) is having a significant effect on both consumer-facing and commercial enterprises. At the consumer level, this can be seen in the increasing number of sensor-based smart devices flooding the marketplace. Yet the biggest economic impact is in the industrial and service-based segments, including commercial insurance. By aligning their business requirements with the capabilities of the Internet of Things, insurers can sharpen operational efficiencies, open new revenue streams, drive profitable growth and keep customers close.
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.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
Let's demystify the IoT insurance fake news.
Lesson learned through the work with more than 100 insurers, reinsurers and tech players in 15 different countries.
Employing Telematics to Transform Workers' CompensationCognizant
Various pressures like heightened competition, rising costs and tougher regulations are compelling workers' compensation insurers to automate their systems, connect their people, processes and devices, and distill accurate, real-time information from the digital data that that encircles people, processes, organizations and devices. Telematics - technologies that integrate telecommunications and information can be the key to achieving these goals, all through a proactive, smarter, tightly connected environment.
AUSIS AI UNDERWRITING PLATFORM TRANSFORMING INSURANCEArtivatic.ai
Transforming Insurance with use of AI & ML. AUSIS Platform allows insurance to build risk assessment in real time for faster, customized and need based insurance issuance under 60 seconds. AUSIS is flagship product of Artivatic.
The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 50 prestigious organizations – Insurers, Reinsurers and Tech players – have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
As objects become embedded with sensors and gain the ability to communicate,
the new information networks promise to create new business models, improve
business processes, and reduce costs and risks. One such Model is the internet of
things. Sensors and actuators are embedded in physical objects from roadways to
pacemakers are linked through wired and wireless networks, often using the same Internet
Protocol (IP) that connects the Internet. Internet of Things has great potential to support
society, to improve energy efficiency and to optimize various kinds of mobility and
transport at the same time. However, the Internet of Things raises significant
challenges that could stand in the way of reaping its potential benefits. Pitfalls
concerning cyber security, theft and hacking of personal and financial data are the
ones that are making people agitated.
Electronic devices used at home, workplaces, in a neighbourhood or in a large
urban landscape are connected and provide data which is accumulated and analyzed
for the benefit of its users. The ability of a simple cell phone connecting to other
devices, sensors in public, to regulate traffic and other civic institutions, shows how
IoT has merged with data and analytics of data plays a key role and will continue to
do so in the future.
IoT is a terrific opportunity for the insurance sector.
But the average understanding of this opportunity in the different markets is low, and it is common to hear superficial comments by analysts in the various markets.
Let's demystify some myths!
Digital Shift in Insurance: How is the Industry Responding with the Influx of...DataWorks Summit
The digital connected world is having an impact on the technology environments that insurers must create to thrive in the new era of computing. The nature of customer interactions, business processes from product, risk and claims management are continuously changing. During this session we will review recent research and insights from insurance companies in the life, general and reinsurance markets and discuss the implications for insurers as the industry considers implications from core systems, predictive and preventive analytics and improvements to customer experiences.
Millions of dollars are being spent annually by the insurance industry in InsurTech investments from risk listening, customer interactions (chatbots, SMS messaging, smart interactive conversations), to methods of evaluating claims (digital capture at notice of incident, dashcams, connected homes/vehicles).
These are all new types of data which the industry hasn't previously had to manage and govern.
Additionally, at the heart of this is how to create new business opportunities from data. We will also have an interactive conversation on discussing and exploring insurance implications of the new computing environment from AI, Big Data and IoT (Edge computing).
The Internet of Things (IoT) has been developing over the last 20 years and is often referred to as Industry 4.0 or the “fourth industrial revolution.” It is an umbrella term for all the digital assets and entities connected to the internet. Many of these are intangibles, such as data, human capital via artificial intelligence (AI), intellectual property (IP), and cyber; as such, they need to be made tangible to address value on a balance sheet. Others are connected entities, such as sensor devices, collecting and receiving information in an intelligent fashion across networks.
Definition, architecture, general applications, and energy management specified application of expert systems - Class presentation - University of Tabriz 2019
Next-Generation Insurance: Tapping Into the Intelligence of Smart HomesCognizant
While the concept of smart homes is not new, the proliferation of household data from sensors and smart devices, plus advances in data analytics, present compelling opportunities for property and casualty insurers. Yet to reap the full benefits of smart homes, these companies must overcome fundamental challenges, including device costs, adoption rates, access to data, the lack of standardized communication protocols, and privacy and security concerns.
Outlines the regulatory, privacy and security risks faced by FinTech companies and Financial Services firms if their digital strategy is not thought through.
The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 40 prestigious organizations – Insurers, Reinsurers and Tech players – have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
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.
Employing Telematics to Transform Workers' CompensationCognizant
Various pressures like heightened competition, rising costs and tougher regulations are compelling workers' compensation insurers to automate their systems, connect their people, processes and devices, and distill accurate, real-time information from the digital data that that encircles people, processes, organizations and devices. Telematics - technologies that integrate telecommunications and information can be the key to achieving these goals, all through a proactive, smarter, tightly connected environment.
AUSIS AI UNDERWRITING PLATFORM TRANSFORMING INSURANCEArtivatic.ai
Transforming Insurance with use of AI & ML. AUSIS Platform allows insurance to build risk assessment in real time for faster, customized and need based insurance issuance under 60 seconds. AUSIS is flagship product of Artivatic.
The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 50 prestigious organizations – Insurers, Reinsurers and Tech players – have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
As objects become embedded with sensors and gain the ability to communicate,
the new information networks promise to create new business models, improve
business processes, and reduce costs and risks. One such Model is the internet of
things. Sensors and actuators are embedded in physical objects from roadways to
pacemakers are linked through wired and wireless networks, often using the same Internet
Protocol (IP) that connects the Internet. Internet of Things has great potential to support
society, to improve energy efficiency and to optimize various kinds of mobility and
transport at the same time. However, the Internet of Things raises significant
challenges that could stand in the way of reaping its potential benefits. Pitfalls
concerning cyber security, theft and hacking of personal and financial data are the
ones that are making people agitated.
Electronic devices used at home, workplaces, in a neighbourhood or in a large
urban landscape are connected and provide data which is accumulated and analyzed
for the benefit of its users. The ability of a simple cell phone connecting to other
devices, sensors in public, to regulate traffic and other civic institutions, shows how
IoT has merged with data and analytics of data plays a key role and will continue to
do so in the future.
IoT is a terrific opportunity for the insurance sector.
But the average understanding of this opportunity in the different markets is low, and it is common to hear superficial comments by analysts in the various markets.
Let's demystify some myths!
Digital Shift in Insurance: How is the Industry Responding with the Influx of...DataWorks Summit
The digital connected world is having an impact on the technology environments that insurers must create to thrive in the new era of computing. The nature of customer interactions, business processes from product, risk and claims management are continuously changing. During this session we will review recent research and insights from insurance companies in the life, general and reinsurance markets and discuss the implications for insurers as the industry considers implications from core systems, predictive and preventive analytics and improvements to customer experiences.
Millions of dollars are being spent annually by the insurance industry in InsurTech investments from risk listening, customer interactions (chatbots, SMS messaging, smart interactive conversations), to methods of evaluating claims (digital capture at notice of incident, dashcams, connected homes/vehicles).
These are all new types of data which the industry hasn't previously had to manage and govern.
Additionally, at the heart of this is how to create new business opportunities from data. We will also have an interactive conversation on discussing and exploring insurance implications of the new computing environment from AI, Big Data and IoT (Edge computing).
The Internet of Things (IoT) has been developing over the last 20 years and is often referred to as Industry 4.0 or the “fourth industrial revolution.” It is an umbrella term for all the digital assets and entities connected to the internet. Many of these are intangibles, such as data, human capital via artificial intelligence (AI), intellectual property (IP), and cyber; as such, they need to be made tangible to address value on a balance sheet. Others are connected entities, such as sensor devices, collecting and receiving information in an intelligent fashion across networks.
Definition, architecture, general applications, and energy management specified application of expert systems - Class presentation - University of Tabriz 2019
Next-Generation Insurance: Tapping Into the Intelligence of Smart HomesCognizant
While the concept of smart homes is not new, the proliferation of household data from sensors and smart devices, plus advances in data analytics, present compelling opportunities for property and casualty insurers. Yet to reap the full benefits of smart homes, these companies must overcome fundamental challenges, including device costs, adoption rates, access to data, the lack of standardized communication protocols, and privacy and security concerns.
Outlines the regulatory, privacy and security risks faced by FinTech companies and Financial Services firms if their digital strategy is not thought through.
The IoT Insurance Observatory has continued to grow both in Europe and North America.
More than 40 prestigious organizations – Insurers, Reinsurers and Tech players – have joined this think tank and contributed with their thoughts to the activities. Together with the production of the most pragmatic insights about the IoT adoption in the insurance sector (auto telematics, connected properties, connected health and life, IoT workers' compensation), the onboarding of new members is going to continue in the next months.
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.
Cybersmart_buildings_securing your investment in connectivity and automationIron Mountain
One of the biggest pitfalls with physical building situational awareness is a one-sided view of the threat level. Learn about CyberSmart Buildings IoT connectivity & automation.
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term due largely to the rapid innovation that the Internet of Things is driving throughout the economy. Yet, in the midst of this disruption there is opportunity. Insurers will need to dramatically reshape their business model, combining insurance with technology, ecosystem services and partners.
The Internet of Things: P&C Carriers & the Power of DigitalCognizant
As P&C carriers struggle to achieve and maintain profitable growth, they must prepare for and stay in step with advancements in digital technologies. The Internet of Things (IoT) and its network of connected devices and objects makes it possible for carriers to transform how they communicate, collaborate, and operate, and strengthen their capabilities in a number of key areas.
The Internet of Things: the 4 security dimensions of smart devicesWavestone
Like all major technological revolutions, digital transformation is spreading over many areas. The Internet of Things plays an important role in this trend, trough the emergence of numerous devices.
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
Insurance Cloud: From Tactical to Strategic Investment for European InsurersAccenture Insurance
Insurance companies have been relatively cautious about cloud adoption. However, the conversation among insurers has changed in the last few years, moving to “when and how” rather than “why.” Several factors are driving today’s insurance companies to move their applications and data into the cloud as they reassess their business opportunities. Learn more:
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
In recent years, insurers have invested in technology platforms and process improvements to improve
claims outcomes. Leaders will build on this foundation across the claims landscape, spanning experience,
operations, customer service and the overall supply chain with market-differentiating capabilities to
achieve sustainable results.
How an insurer can stay relevant in the age of dataMatteo Carbone
Irrelevancy is only a choice for an Insurer, not his inevitable destiny. Insurtech can make the insurance sector stronger and therefore more capable of achieving its strategic goal: to protect the way people live.
Similar to Transforming Commercial Property Insurance (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.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is evolving into a strategy that reaches across technology companies. We offer guidance on the rise of experience and its role in business modernization, with details on how orgnizations can build the ecosystem to support it.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Enhancing Desirability: Five Considerations for Winning Digital InitiativesCognizant
To be a modern digital business in the post-COVID era, organizations must be fanatical about the experiences they deliver to an increasingly savvy and expectant user community. Getting there requires a mastery of human-design thinking, compelling user interface and interaction design, and a focus on functional and nonfunctional capabilities that drive business differentiation and results.
The Work Ahead in Manufacturing: Fulfilling the Agility MandateCognizant
According to our research, manufacturers are well ahead of other industries in their IoT deployments but need to marshal the investment required to meet today’s intensified demands for business resilience.
The Work Ahead in Higher Education: Repaving the Road for the Employees of To...Cognizant
Higher-ed institutions expect pandemic-driven disruption to continue, especially as hyperconnectivity, analytics and AI drive personalized education models over the lifetime of the learner, according to our recent research.
Profitability in the Direct-to-Consumer Marketplace: A Playbook for Media and...Cognizant
Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
Policy Administration Modernization: Four Paths for InsurersCognizant
The pivot to digital is fraught with numerous obstacles but with proper planning and execution, legacy carriers can update their core systems and keep pace with the competition, while proactively addressing customer needs.
The Work Ahead in Utilities: Powering a Sustainable Future with DigitalCognizant
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1. Future of Insurance | September 2017
Transforming
Commercial
Property Insurance
How leading commercial building insurers
are using innovative IoT solutions to
reduce risk, lower premiums and develop
collaborative partnerships with their clients.
Executive Summary
There is a game-changing transformation
underway in commercial property insurance.
Leading insurers are innovating with Internet
of Things (IoT) solutions to add new value
for business tenants and building landlords.
Insurers able to harness this innovative
technology could dramatically reduce the
risk of business interruption from property
damage, enable lower premiums, and share
new insights to operate more efficiently.
In addition, they will open the door to highly
collaborative partnerships with the companies
they insure.
Commercial property insurers are facing
an unprecedented opportunity to redraw
relationships with their clients. Technology
advances such as IoT and cloud are
creating an explosion of data which can be
used to deliver more value to the tenants
and landlords they serve, enabling closer
partnerships and fresh sources of revenue.
Those insurers that fail to act will increasingly
be left behind, as their client interactions
remain infrequent and cyclical, and the value
their products provide to clients is diminished
versus the new wave of smart insurance.
FUTURE OF INSURANCE
2. Future of Insurance
Transforming Commercial Property Insurance | 2
Future of Insurance
Transforming Commercial Property Insurance | 2
3. Future of Insurance
Transforming Commercial Property Insurance | 3
AN UNMET DEMAND
Leading institutions across the insurance industry
are recognising the disruptive power of IoT. For
example, the British Insurance Brokers’ Association
(BIBA) found that telematics-based motor
insurance policies were up 40% during 2015, to
455,000.1
Forward-thinking insurers understand
the competitive imperative to use real-time data
to generate fresh value for customers: by tailoring
prices, helping them to mitigate the risk of loss,
and even adding new commercial insights.
The majority of commercial property insurers are
yet to embrace IoT to revamp their value proposition,
however, creating a significant opportunity for
first-movers in the sector. Some leading commercial
insurers, such as Munich Re and Hartford Steam
Boiler (HSB), are stealing a march by investing in
incubators such as Plug n Play’s IoT accelerator.2
The approach will help to accelerate the understanding
needed to open new opportunities in commercial
lines using real-time analytics from sensor data.
For commercial tenants, the business consequences
of interruption from property damage can be
far-reaching. For instance, if a warehouse is closed
due to water damage, it may be impossible for the
occupying business to meet customer orders from
an alternative property. Such events can disrupt an
entire supply chain, and the firm may suffer untold
reputational harm.
A study of Allianz’s proprietary claims data for 2010
to 2014 found that 87% of business interruption
claims resulted from non-natural hazards – with
technical or human factors the key cause. It also
showed that fire and explosion, machinery breakdown,
storms, and water damage were the top causes of
property claims.3
As IoT technologies become more sophisticated,
and “smart” buildings become more prevalent,
insurers can help clients to predict and avoid these
risks, delivering huge potential savings. Meanwhile,
risk engineering consultants can elevate the service
they deliver to landlords and tenants; the increased
volume and granularity of data available will enable
them to identify target areas of building performance
far more quickly, and implement the optimum
mitigation strategies.
4. Future of Insurance
Transforming Commercial Property Insurance | 4
As IoT technologies become more
sophisticated, and “smart” buildings
become more prevalent, insurers can
help clients to predict and avoid these
risks, delivering huge potential savings.
BUILDING
AUTOMATION
• Building Automation System
Management layer
• Room Automation:
HVAC, lighting, blind control
• Sensors, thermostats, field
devices, actuators
• Fire & safety control
• Security & access control
door entry systems
Listening to Buildings*
Sensors installed throughout commercial buildings constantly
monitor a wide range of systems and feed data back to the
landlords and their insurers.
Future of Insurance
5. Future of Insurance
Transforming Commercial Property Insurance | 5
COMMUNICATION
• Building connectivity
• Telephone systems
POWER / ELECTRICAL
• Cable protection
• Electric motors
• MV/LV Switch gear circuit breakers
• UPS back-up power
• Solar PV inverters
Future of Insurance
Figure 1
6. Future of Insurance
Transforming Commercial Property Insurance | 6
THE POWER OF IOT
The increasing cost effectiveness of smart sensor
technology opens the opportunity to transform
commercial buildings into sentient systems.
(see Figure 1)
Data can be captured from multiple building networks,
such as lighting systems, water, gas, air conditioning
and alarm systems and be used to “listen in” to how
these systems are performing.
Amsterdam’s The Edge building – one of the world’s
most advanced office buildings – uses an Ethernet-
powered LED lighting system that is integrated with
30,000 sensors to continuously measure occupancy,
movement, lighting levels, humidity and
temperature.4
But even in older, less sophisticated
buildings, new technology solutions are now opening
up the possibility to access and consolidate data from
thousands of different types of devices, from various
manufacturers, that have been fitted as standard
over the past 20 years.
Captured data can be analysed and used for
a wide range of purposes and to the benefit
all parties, including building owners, individual
occupiers and insurers, among others.
Sensors can detect faults in real time, enabling
businesses to mitigate risk before it becomes
serious. For example, by linking a weather station
on the roof to the temperature systems within
the building, it is possible to recognise in real time
when the air conditioning or frost protection
equipment are working effectively, or if there is a
problem. Continuous monitoring of the building’s
inner workings make it far easier to see how well
the systems are maintained, which allows repairs
to be carried out before problems arise.
A VIRTUOUS CIRCLE
As the use of IoT in commercial property insurance
becomes more commonplace, the relationships
between insurers and their clients will evolve to
become more collaborative, with frequent, high
value interactions between the two parties.
These partnerships can create a virtuous circle
producing a number of benefits.
Claims, which cost insurers close to 5.5bn a year5
should reduce either in frequency, size of payouts,
or both, as insurers are able to help tenants and
landlords take pre-emptive action against potential
property damage. Underwriting accuracy should
also improve since risk calculations will have access
to holistic real-time data about the operating
performance of the building.
For the insured, health and safety regulations
and best practice, too, will be easier to enforce
with the likelihood of risk to personal property,
injury or death diminishing.
At the same time, insurers will be able to deliver
insights that help tenants and landlords to better
influence the costs and quality of the building’s
services and systems with other providers. For
example, dashboards that show use patterns and
occupancy to building managers will enable more
effective deployment of ancillary services such
as cleaning. It creates the opportunity for energy
savings too, as lighting and heating can be switched
off in areas that are regularly unoccupied. Indeed,
research from Gartner found IoT solutions can
reduce energy costs by as much as 30%, particularly
for large sites, such as industrial zones, office parks,
shopping malls, airports or seaports.6
7. Future of Insurance
Transforming Commercial Property Insurance | 7
KEY BENEFITS OF IOT
FOR THE INSURED
Risk Engineering:
Significantly enhances risk
engineering services with detailed
building operation data.
Health and Safety:
Improvements to health and safety
and reduced risk of personal claims.
Property Management:
The insured will be able to influence the
costs and quality associated with running
the building.
Deductibles:
Organisations that self-insure to a high level,
such as the NHS, can reduce the likelihood of
payouts through harnessing better risk insights.
BENEFITS FOR
THE INSURED
BENEFITS
FOR INSURERS
EVOLVING
RELATIONSHIP
Collaborative
Frequent
High-value Interactions
InsuredInsurer
KEY BENEFITS OF IOT
FOR INSURERS
Claims:
Improvements in claims performance
across lines.
Risk Reserves:
Risk reserves can be released as the
associated risks become more visible.
Underwriting:
Pricing will be more accurate as data quality
will be improved, thus reducing underwriting costs.
Partnerships:
Improves relations with other stakeholders.
The IoT Virtuous Circle
Figure 2
8. Future of Insurance
Transforming Commercial Property Insurance | 8
NEXT-LEVEL VALUE
For the most forward-thinking insurers, even greater
commercial opportunities may arise over a longer
time horizon. Using their analytical expertise and
experience in translating vast volumes of data into
actionable insights, insurers could become key
partners to industries such as retail in their quest
to profit from big data.
Retail estate businesses such as Westfield are already
investigating how the technology infrastructure in
their shopping centres can help them to interact
with customers in more meaningful ways, such as
by installing connected beacons that could help
shoppers navigate the estate and receive real-time
offers via their smartphones.7
Using a similar principle, by tracking customers’
movements and activities within their centres,
retailers can glean valuable insights about footfall
and effective placements of advertising, among
other things. It may be possible for insurers to play
a role in helping retail estate landlords to deliver
new analytics services to their retail tenants.
As artificial intelligence (AI) and machine learning
solutions enable more advanced analysis of building
data, it could take the efficiency with which building
performance is managed to new heights. Applying
these solutions may enable fully automated
identification of building risks, and for corrective
action to be at least initiated without the need for
human intervention. For instance, in a retail context,
an AI system could link particular patterns or spikes
in power consumption to the impending failure of an
escalator. In response, it could autonomously signal
for an engineer to fix the issue at an appropriate time
of day to minimise any disruption to sales.
Transforming Commercial Property Insurance | 8
9. Future of Insurance
Transforming Commercial Property Insurance | 9
UNLOCKING FRESH ROUTES
TO GROWTH
IDC, a leading market research firm, forecasts that
worldwide spending on the Internet of Things will
grow at a 17% compound annual growth rate (CAGR)
— from $698.6 billion in 2015 to nearly $1.3 trillion in
2019. Maximum growth will be seen in industries that
are dominated by physical products or assets that
must be IoT-enabled.8
This is an opportunity that commercial insurers
cannot afford to miss: it will be the industry’s first-
movers that are best-positioned to capture the new
revenue on offer.
Insurers need to move fast, but they cannot capture
these opportunities by themselves. They will need
to forge partnerships with entities right across the
data value chain, from IoT manufacturers, to cloud
platforms, to third-party data providers. By developing
these relationships, insurers will become an integral
part of IoT ecosystems that will transform the value
they create for their clients, and unlock fresh routes
to growth.
Internet of Things will grow at a 17% compound
annual growth rate (CAGR) – from $698.6
billion in 2015 to nearly $1.3 trillion in 2019.
Transforming Commercial Property Insurance | 9
10. Future of Insurance
Transforming Commercial Property Insurance | 10
FOOTNOTES
1
“40% Increase in telematics motor policies in a year”, British Insurance Brokers’ Association (BIBA), March 14 2016.
2
“Munich Re Sponsors Plug and Play Accelerator for the Internet of Things,” May, 2015.
https://www.munichre.com/en/media-relations/publications/company-news/2015/2015-05-20-company-
news/index.html.
3
“Global Claims Review 2015: Business Interruption In Focus”, Allianz Global Corporate & Specialty, December 2015.
4
“The smartest building in the world”, Bloomberg, September 2015.
https://www.bloomberg.com/features/2015-the-edge-the-worlds-greenest-building/.
5
“UK Insurance and Long-Term Savings: Key Facts 2016”, Association of British Insurers (AIB), November 2016.
6
http://www.gartner.com/newsroom/id/3175418.
7
“The New Real: Unlocking new gains through smart buildings”, Charles Russell Speechlys, November 2016.
8
IDC press release.
https://www.idc.com/getdoc.jsp?containerId=prUS40782915.
11. Future of Insurance
ABOUT THE AUTHORS
David Sexton
Vice President
Leader of Cognizant’s
Insurance Practice for
UK & Ireland
David Sexton is Vice President and Leader of Cognizant’s
Insurance Practice for UK & Ireland, covering all industry
subsectors – life and pensions, general insurance and the
London market. He is responsible for Cognizant’s response
to the UK insurance industry challenges, delivering to our
existing client engagements and bringing Cognizant’s IT
modernization and industry innovation to our clients and
the UK&I insurance arena. Based in London, David brings
20 years of experience in insurance and technology. David
can be reached at: David.Sexton@cognizant.com | LinkedIn:
https://in.linkedin.com/in/david-sexton-3407b911/.
Jonathan Giles
Principal Architect
Cognizant Consultancy’s
Insurance Practice for
UK & Ireland
Jonathan Giles is a Principal Architect at Cognizant Consulting’s
Insurance Practice, which provides enterprise and solution
architecture consulting services to insurers, Reinsurers and
Brokers. He has more than 25 years in enterprise and solutions
architecture experience. Over the past 14 years he’s been
focused on providing high end consulting to insurance firms,
and for the past five years he’s been supporting start-ups
and have lead architecture design on a number of insurance
telematics solutions. Jonathan can be reached at: Jonathan.
Giles@cognizant.com | LinkedIn: https://in.linkedin.com/in/
jongiles/.
Transforming Commercial Property Insurance | 11