The connected world is here now. Things are “smart.” As well as for insurers, the implications are huge. Anything you insure is now able to connected, monitored and analyzed. People, places and things, moving or stationary, living or non-living-are all becoming smart. Believe that is an exaggeration? Consider the following products announced or displayed at the Consumer Electronics Show (CES) 2021, just some of the thousands of smart products:
- Smart air vents to monitor and adjust temperature in every room, detect for early signs of mold, etc.
- Smart drinking glasses to watch hydration and caffeine intake
- Neuro-stimulation devices to block chronic pain or alter moods
- Smart appliances that manage energy efficiency, anticipate failures, conduct e-commerce, etc.
- Wearable patches to watch UV rays, toxic exposure and biometrics
- In-car cameras that monitor a driver's pupils for indications of stress
Add to that list smart belts, umbrellas and smoke alarms among a number of other things, and it's difficult to find anything that doesn't have a “smart version” today. And it is all pretty exciting stuff. But here's the rub-in many cases, the technology is way in front of the desire and ability of consumers and businesses for doing things. Several important considerations become central themes at CES:
- Value propositions require more work. Many of the products at CES were narrow-use, high-priced items which operate in isolation.
- Customer experience continues to be king. Products must be easy to install, simple to use and engaging. Progress is certainly being made here, especially among wearables, however, many of the smart home and car products have to take the knowledge one stage further to get past the early adopters.
- Platforms and standards progress are required. Competing platforms for smart home hubs, connected car capabilities, intelligent infrastructure and other areas may impede adoption. The competitive environment is healthy, but widespread adoption will need more interoperability standards along with a shakeout of players.
- New ecosystems and partnerships are rapidly evolving. Industry boundaries are disappearing, and new industries are emerging. Success in the connected world will require active involvement in various ecosystems too as a flexible partnering strategy.
- Analytics and cognitive computing will be the differentiators. Embedding chips, sensors and devices into things are creating vast oceans of data. The value will increasingly depend, not on owning proprietary data, but around the ability to gain actionable insights. Cognitive computing goes even further by automating real-time learning, reasoning and suggestions.
These five considerations along with other factors will affect adoption rates and opportunities for businesses and consumers. However it would be a mistake to conclude there are too many complications or barriers to progress. In fact, the alternative holds true. Advances are being made at breakneck speed, and barriers are being knocked recorded on a regular basis. Contrary, which means that insurers have to be even more diligent and aggressive in shaping the near future.
So, innovate to produce new value propositions. Seize possibilities to transform the client experience. Weigh in at relevant standards and platform discussions. Join new ecosystems and seek partnerships with unconventional allies. And build up your enterprise analytics expertise and capabilities.
The digital, connected world is here. If you would like your organization to thrive within this new era, you have to jump in with both feet. The options are endless, but you must play a role in shaping and taking advantage of them.
