The evolution of the Internet of Things, combined with changing behaviors and preferences from Gen Y customers, is pushing the insurance industry toward massive disruption. This year’s Report explores how these trends are driving an urgent need for insurers to transform or risk falling behind new competitors.

1. World Insurance Report 2016
from Capgemini and Efma
www.worldinsurancereport.com
Connected technologies and the Internet of Things are disrupting
how insurers connect with customers and underwrite risk…
34%
of customers are
likely to adopt
23%
of customers are
likely to adopt
Use social media for
insurance needs at
least once a month
Use social media for
insurance needs at
least once a month
Connected
ecosystems
smart homes &
buildings
Embedded
technologies
wearable or
digestible devices
Machine intelligence�
drones, robots, cars
… and driving the transformation
of the insurance industry
Gen Y and affluent customers are more demanding in the way
they connect with their insurers
30%
of customers are
likely to adopt
3
Interact with insurer
2.5X more on
social media and
2.0X more on
internet-mobile channel
Interact with insurer
1.5X more on
social media and
internet-mobile channel
Gen Y customers Affluent customers
27%32%
These affluent, technology-savvy customers may easily turn to
non-traditional firms for insurance
Likely to choose non-traditional
firms for insurance
&
1. Streamline processes
2. Build data and
analytic capabilities
3. Look for strategic
growth opportunities
1. Improve the value
proposition and services
2. Establish strategic
alliances
3. Build insights-driven
strategies through
data analytics
1. Prepare for evolution
in underwriting,
new customer and
product portfolios
2. Compete with new
industry players
of affluent Gen Y customers
are ready to buy insurance from
non-traditional insurance firms
Gen Y customers
Strengthen Enhance Transform
23% 31% 47%
Affluent customers
These disruptive technologies mean risk is shifting, decreasing
and becoming more transparent, requiring insurance companies
to change how they fundamentally assess and manage risk
GenY + Affluent customers
1-2 years
Short-Term
3-5 years
Mid-Term
5+ years
Long-Term
Copyright ©2016 Capgemini. All rights reserved.
For more information, contact us at insurance@capgemini.com
LookingattheFutureofInsuranceThePathForward
Globally, 47% of all customers have positive
experiences with their insurer, but only 34%
of Gen Y customers do