The old model of massive risk departments analysing every insurance claim already changing with self-service processing by claimants, analysing structured & unstructured data to detect fraud, algorithm & data driven decision making. Faster settlement claims and remedial action, better service and lower costs all add to compelling need to change
Insurers are already exploring how the IoT will transform the insurance industry through improved customer dialogue, more precise price models and faster settlements. This is achieved through real-time monitoring, collection and analysis of behavioral data for both P&C and life insurance. This creates many opportunities for incumbents, as well as threats from new entrants like Google.