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Internet of Things: Are you ready to be an Insurer of Things?

Insurers will need to dramatically reshape their business model in the era of the Internet of Things.


"83 percent of insurers believe that digital devices are powering the shift from selling things to selling outcomes and experiences."

The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term because of the rapid innovation that the Internet of Things is driving throughout the economy. The risk for insurance is becoming a mere commodity.

But the disruptive technologies of the Internet of Things are an opportunity for insurers who act quickly to define new roles and create a connected offering model. In this environment, it is critical to be an innovator across the entire insurance value chain and also to be effective operating across a broader partner ecosystem.

Effective leadership will be essential in creating a vision for becoming an Insurer of Things and then putting in place the incubators and operating models to make that vision a reality. Considerable risks are involved in this transformation, but the risk of doing nothing is far greater.


Key Findings

The Internet of Things (IoT) is driving a connected, as-a-service economy, and traditional insurers must adapt quickly. Three dimensions of the industry will be most affected:


Accenture has identified five keys to achieving success as an Insurer of Things:

  1. Choose the role you intend to play. First, insurers can act as service providers, supplying an innovative technology-based insurance product to a third-party ecosystem, with other industry players acting as aggregators of the extended offering.

    Second, insurers can be value aggregators, launching innovative and extended offerings, beyond traditional insurance, and directly selecting and managing the partners they need.

  2. Define a connected operating model. Insurers will need to define a connected offering model across three integrated layers: insurance product, technology, and ecosystem services

  3. Take action across the value chain. Because the IoT will affect every phase and process of the insurance business, insurers need to extend, automate and adapt the insurance value chain.

  4. Share and collaborate. Insurers will need to open up to the outside world of ecosystem partners—sharing not only customer data, but customers themselves. IT architectures will need to evolve, ensuring flexibility and interoperability with external partners and providers.

  5. Foster a culture of innovation. This new culture will need to be infused across the whole organization, from idea generation to workforce training and onboarding.

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