Benefits of Wearables and Big Data for Life Insurance
Industry Strategic Challenges
The insurance industry has always been an intensely competitive business. Now, new forces at play in the insurance marketplace are putting pressure on insurers to reinvent themselves and their industry. The rise of digital commerce has led to consumer demand for more personalized insurance products and faster delivery of services. At the same time, there are growing concerns about privacy and security. Demographic and technological changes are challenging existing business models, in which established players compete on price and premium using a time-consuming and cost-intensive approach to customer relationship lifecycle management. Insurers are looking for ways to stay relevant and set their organization apart from the competition.
Insurers who embrace predictive analytics based on data gathered, in part, with wearable technology are able to increase profits through new sales opportunities and reduce the cost of customer acquisition and retention. The power of Big Data and predictive analytics oﬀers the ability to meet today's challenges eﬀectively, with a more targeted approach to attracting and retaining the most profitable customers.