Article Synopsis :
Did you know 31% of insurance companies are already using wearable technology for customer engagement? We didn’t either, which is why we include this snack of a report, “The Wonderful World of Wearables for Insurers”, from Sapiens, in this month’s Library.
Wearables change the way human data is captured, stored and analysed, increasingly in real time. As 33% of U.S. consumers will own wearable technology by the end of 2017 wearables are no longer a niche technology.
Wearables offer insurers various areas of potential including marketing, underwriting, risk management, and new product development. Some of the benefits to be realised include:
- Healthier customers require fewer appointments, tests and hospital visits
- Wearables can be used to increase customer loyalty and strengthen insurers’ brands via popular apps, gamification and social media
- Health coverage decisions can be formulated with the latest and most accurate information, reducing exposure to risk (and cost)
- Usage-based programs (already popular with property and casualty/general insurance carriers) based on wearable data, will enable the provision of personalized programs and enhanced customer service
Wearables do present technical challenges. The report suggests the following four steps to reap the potential benefits:
- Complete Your Digital Transformation
- Formulate Your Digital Strategy
- Be Open to the Possibilities
- Secure Your Data
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Digital Insurer's CommentsWearables, hyped for years, have finally hit the mainstream with products from Apple, Google, Fitbit and Samsung. How can insurers capitalize? We recommend a three-step approach:
- Search and build strategic partnership(s) with fitting wearable device provider(s)
- Invest in product development geared specifically for wearables
- Identify and target unique segments defined by wearable use
As insurance carriers build business cases for cloud, mobility and IoT adoption, they must consider how and where wearable technology fits into these roadmaps.
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