Internet of Things: Shaping the Insurance Industry
by Narayn Sridharan | September 29, 2015
Despite the hype, the Internet of Things (IOT) is taking substantive shape in the insurance industry. Initial pilots offer a glimpse of how a tightly interconnected physical and digital world can drive breakthroughs in productivity, organizational efficiency, and entirely new product and service models that radically improve customer experiences.
Experimentation is beginning to give way to pilots with wearable technology that progressive insurance organizations are undertaking to advance their digital business agendas. One insurance company explored the potential of IoT through the Google Glass platform.
Insurance claims adjustors are often called upon in times of crisis to do their jobs amid great stress and calamity, such as in the aftermath of major storms or accidents.
A large insurance company wanted to explore how to make claims adjustors safer and more productive with a hands-free wearable solution that would substantially improve the claims adjustments workflow process.
The Project and Solution
The company asked Cognizant to help prototype a solution based on the Google Glass platform (which, not coincidentally, Google is shifting from a consumer device to a specialized, industry-specific platform).
The solution included real-time connectivity to colleagues with specialized auto and real estate expertise, a video and image capture tool, legacy system integration to file reports, and a voice-recognition capability that allowed adjustors to do their job without the typical pen-and-paper survey process. This hands-free option would give adjustors the ability to inspect damaged property and traverse difficult environments freely.
The pilot showcased the possibilities and transformed the claims adjustor process with a digital, hands-free
As part of this effort, we helped the client explore how wearables could fit in their overall businesses by helping them consider the following:
- Are wearables necessary to achieve business goals? If so, what kind?
- How are business processes impacted with the introduction of wearables? What work flow changes would have to happen?
- How will the business ensure data security, privacy, and integrity? Will privacy concerns impact what kind of wearables could be used?
- How would devices be managed?
- How would new and changed business processes integrate with legacy enterprise systems, like ERP and CRM?
- How would we ensure connectivity via WiFi/3G/4G Networks, especially in the event of natural disasters?
Wearables on the Roadmap
As wearables technology continues to evolve, it will present insurers with a goldmine of opportunities and challenges. It will become increasingly vital to adapt or risk losing business to technology-focused competitors — something insurers in particular can ill afford in a slow-growth industry. As insurance carriers build business and technology use cases, as well as architecture and services, for mobile devices, they must consider how and where wearable technology fits into their roadmaps. As such, insurance carriers should begin preparing for this technological innovation now. Begin by strategizing and piloting with employees and customers.
For additional insight on such applications, read the white paper “Google Glass: Insurance’s Next Killer App”.
Opinions expressed in this blog are of the author and may not represent Cognizant's point of view.
Image by Cognizant