Craig Beattie, senior analyst at Celent, has revealed the top IT trends that will be prevalent in the insurance industry this year in a recent blog post.
Celent’s first prediction is the increasing importance and evolution of digital. Insurance organisations will invest more in digital and comprehensive digitisation projects will drive IT budgets this year.
“Celent predicts vendors would market core systems as customer centric again, but this time meaning digital customer centricity,” said Beattie. “Celent expects to see core system user interfaces to acquire more social features along with a deeper investment in user interfaces leveraging voice, gesture, expression and eye movements.”
Celent’s second trend focuses on the impact of the ‘Internet of Things’ and the rise of robots. “The merger or evolution of the internet with the ‘Internet of Things’ accelerates with devices contributing ever more data,” Beattie said. “Celent predicts this rise of the ‘Internet of Things’ or the sensor swarm, will push usage-based insurance policies to other lines of business – not just telematics-based auto policies that usage-based insurance is currently synonymous with. Celent further predicts that the quantified self movement and humans with sensors will in 2014 yield the first potentially disruptive business model for health insurance using this data.”
Beattie also suggests that robotics and artificial intelligence will see broader adoption in the insurance industry. “Celent predicts 2014 will see drones used for commercial purposes. I hope we won’t have the need, but wonder if we’ll see drones rather than helicopters capturing information about crisis-stricken regions in 2014.”
Celent’s final prediction is that insurance organisations will focus on going back to basics. “Celent predicts insurers will continue to focus heavily on improving performance of the core business – a good counterbalance to the hype around digital and a good pointer to where to focus digitisation efforts,” said Beattie. “At Celent we have noted a pragmatic interest in the cloud from insurers and we predict increasing complexity in hybrid cloud models, to the benefit of the industry.”
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