CIO Review, US: Cognizant’s Senior Vice President, Insurance, Outlines how Insurance Companies can Harness Technology to Build Customer-Centric Business Models

“Insurers must go beyond enhancing traditional business models with IoT data,” writes David Althoff. “Other companies, including digital natives supplying disruptive in-home technology, are poised to capture a protective, advisory role among consumers.” Excerpts:

“The connected life presents an unique challenge and unparalleled opportunity for insurers - how to remain relevant in policyholders’ lives.

Sensors, connected devices and wearables enable insurers to shift from simply paying for a claim, to proactively preventing those claims or minimizing the disruption to a policyholder.  New business models, built on predicting and preventing breakdowns and accidents, will provide new and integrated products and services to support the way we work, live and play.

With today’s technology, the possibilities for relevance are endless. Insurers could help homeowners with financial strategies for major expenditures such as replacement roofs, re-piping older plumbing or ameliorating known regional issues, from flooding basements to shifting foundations. Additionally, utilizing a diverse and well-informed partner ecosystem would allow insurers to be relevant across the life stages of their policyholders.

The CIO’s organization must move away from a traditional ‘product-centric’ view and develop a technology ecosystem based on a customer-centric view of the world, delivering an always-on customer relationship with high touch digital capabilities. Accomplishing this will require insurance CIOs to integrate business and technology strategies.”

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