April 2016 - The consumer market for IoT and wearable devices has grown rapidly over the last two years, with predictions that the number of devices shipped will double in the next 4 years. This report reviews recent developments and current barriers to adoption, along with future trends for customer experience in this area. The report also examines potential future applications for insurers along with recommendations for preparing for the changing customer expectations created by these devices.

Topics Covered

• Recent Developments. IoT and wearables advances over the last two years.
• Challenges and Barriers. Issues affecting current adoption of these devices.
• Future Trends. How devices will affect customer experience in general and for insurance applications.
• Recommendations. How insurers can prepare now for the changes the spread of IoT will bring.

Key Points and Findings

The large growth in the IoT and wearable device consumer market is changing customer experience and expectations. Customer experience is moving from passive, lookup, app-based information to an interactive, notification-driven environment.

The combination of device data, advanced analytics and AI is driving this change in consumer behavior. Massive amounts of data are enabling more quantification of equipment and humans. Analytics and AI are beginning to enable advanced responsive actions.

The future of IoT and wearables is arriving for insurers. While IoT and wearable device applications are mostly experimental so far, insurers can prepare now for the likely changes in consumer behavior that these devices will bring.

Table of Contents

• Introduction.........................................................3
• Recent Developments..................................4
• Challenges and Barriers..............................5
• Future Trends.....................................................6
• Future Insurance Applications................8
• Recommendations for Insurers..............9
• Next Steps and Related Research.......11
• About Novarica.................................................11
• Authors...................................................................12