A detailed and insightful article by McKinsey on how insurers should (and are) engaging with the world of connected cars.
While the hype is clearly around driver-less cars, such tech is years away from being common and decades away from removing human-driven cars. As such most of the digital focus of incumbent car makers is on the increasing data gathering, data insight and data-driven interactions that telematics and data mining can bring. Insurers can benefit from this and there is likely to be a significant variation between those who grasp it early, make the right alliances and use this as a form of disruptive opportunity; versus those who hesitantly follow, using the same teams and same decision making approaches that served them well in the pre-digital age.
To successfully participate in the connected-car ecosystem, insurers will need to continue to make significant investments in information technology. In our research, we identified four critical areas that CIOs, C-suite executives, and IT professionals at large insurance firms (and at other companies seeking to capitalize on connected-business opportunities) will need to focus on: incorporating mobile sensors and analytics in products and services, enlarging the customer data pool, digitizing customer interfaces, and building up internal digital know-how and capabilities.