transforming the insurance and banking with io t technologies

1. Transforming the Insurance
and Banking with IoT
Technologies
Anju Tiwari

2. 2© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
The internet of things – here to stay
AwarenessMarket Economics
Total economic
IoT value $11
trillion
by 2025
Things Connectivity
Google
acquires
NEST for
$3.2bn.
Samsung
acquires
SmartThings for
$200m
InsureTechs
Majority of
people
have not
heard the term
internet of
things
By 2008 there
were more
things
connected to
the
internet than
there
are people
75 billion
devices by
2020
Mobile
90%+
adoption
rate
Cloud & In-
Memory
scaleable, low
cost, fast
Analytics
powerful and
real-time
Lower sensor
cost
It is an opportunity to re-invent rather than re-design the operating model

3. 3© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Internet of things for financial services
Predict events
& take proactive action
• Reduce Service Cost
• Improve Customer Experience
• Predict risk with accuracy and
moving to risk prevention
Generate new revenue
model and drive
innovation
• Usage Based Insurance:
Comprehensive, end-to-end
risk cover based on the
various attributes collected
in real-time.
• Insure Emerging Risks:
e.g. Workers compensation
can be completely
transformed
Improve Efficiency,
Safety and Profitability
• Managing new risks
• Fraud Analytics
• Operational efficiency
For insurance, it is not about selling the new services but also insuring the new risks. For
Banking, it is about delivering differentiating experience and delivering efficiencies

4. 4© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Use-case: Commercial Insurance
Performance Monitoring – Automobiles
 IOT devices / sensors monitor vehicle performance
in real-time and provide alerts for: Part
replacement after first signs of performance
degradation are highlighted, rather than depending
on odometer reading.
Benefits:
• Cut waste
• Lower costs as much as 50% by reducing
premature discarding of car parts.
• Reduce toxic waste.
Wearables – Logistics/Construction
 Using safe biomechanics, workers reduce the risk
of back injuries, strains and sprains.
 Reduce unsafe postures in the workplace by as
much as 84% using wearable technology that
can automatically detect unsafe postures, and
provides immediate feedback to workers
 Benefits:
• Improved health and safety - prevents
injury (less time lost to sick leave)
• Reduction of long tail risk
• Reduced premiums
Marine Cargo
 Use blockchain technology to combine data from
IoT sensors and shipping systems about
suppliers, shippers, ports and customs org. on a
single shared ledger.
 Works to mitigate risk of cyber attacks in
distribution, marine cargo and logistics.
 Use sensor data to price risk more accurately
Benefits:
 Reduced premiums
 Reduced Capital requirements for reserving
 Improved risk profile for clients
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3 4
Agriculture – Connected Farm
 A connected farm IoT platform expects the
average farm to generate an average of 4.1
million data points per day in 2050, up from
190,000 in 2014.
 Precision farming solutions can give detailed
view of exposure (what crops are planted
where and how many). Ensures the insured
conform to compliance, policy rules and
reporting requirements.
Benefits:
• Longevity of equipment, Reduced claims,
Increased accuracy of underwriting, Ensures
compliance with policy

5. 5© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Use-case: Usage based insurance
Smart Home
 IoT enables insurers to define usage based insurance proposition
centred around a smart home. This shows status of who is in the
house, outside temperature, water flow etc
 Insurer raises price per minute of Theft Cover,
Insurer lowers price per minute of Fire Cover,
Insurer lowers price per minute of Water Damage
Cover
 Benefit: New revenue source
Travel Insurance
 GPS on wearable or smart phone detect policy
holder is out of the UK and notifies Insurer
 Insurer determines Policy Holder does not
have proper cover for medical if an accident
should occur and sends offer
 Policy holder gets offer for 2 week protection
policy and 1 click with payment.
 Benefit: Customer retention
5 6
7 8
Wearables
 Enhanced risk modelling capabilities by
marrying different data sets such as GIS and
wearable technology with historical data sets
 Leverage sensor data and apply smart
analytics, providing a more complete
behavioural-and needs-based pictures of
consumers and distinct segments than exists
today.
 Benefit: Improved risk selection
Smart Home
 Policy holder (PH) gets call from the insurer
on water leak in the property and request a
permission to access the property.
 PH authorises access to the property.
Insurer contacts the PH security firm to gain
access to the property. Insurer finds the
local available plumber and schedules an
appointment
 Benefit: Improve customer satisfaction,
Reduce claims cost

6. 6© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Use-case: Banking
Smart ATM
 Another example where IoT and the banking
industry intersect is with ATMs, which can be
equipped with sensing technology.
 A user with the right biometric identifiers might
one day withdraw money from a sensorised
ATM without ever taking out his debit card
 Benefit: Improved Customer Experience
 Trading Support
 An Ecosystem to support trader in taking Trading
decisions by gathering real-time data/information
across devices/ instruments and analyzing this
vast data to provide unparalleled insights to
traders.
• Real Time information retrieved through IoT
sensors (Ex: MIS data around the
import/export/mining/crop produce, etc.) that is
uploaded and analysed over cloud
 Benefit: Real time decisioning
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3 4
Smart Banking
 Connecting a consumer’s financial activities
with other aspects of his or her life for
example Connecting a user’s health monitor
with his financial portfolio.
 Customers health crisis, captured by the
monitor, could signal the user’s bank to
automatically rebalance his portfolio to
minimize his financial exposure.
 Benefit: Financial model sophistication
Connected Car
 A Driverless car tracks mileage and safety
data automatically. It can automatically
arrange an oil change service, if it is linked to
the driver’s financial account.
 It can take itself in for maintenance/fill-up at
the gas station, without needing the driver
present to swipe a credit card.
 Benefit: Improved customer experience
through connected supply chain

7. 7© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Creating Value Through the Internet of things
1 2 3
Reduced Risk
& Premium
New Data and
Insight
Improved
Customer
Relationship
Improved Retention by 15%
• Peace of Mind
Cost Savings
Intervention to minimise disruption and
stress
• Time saving ‘acceleration of the
normal”
Superior customer experience through
smart devices, smart products, smart
branches
• Improved Risk Selection by
5%
• Insuring and Managing new
risks
• Real time decisioning
• Transform the banking sales
channel and product &
services
Claims Reduction by 25%
 Reduced claims frequency
and severity
 Reduced admin and fraud
Reduced acquisition costs
The internet of things can really help in the following ways

8. 8© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Internet of Things is much more than connected devices
and protocols
Machines
Inventory
Equipment & Tools
Utility Equipment
Etc.
IoT Platform
Outcomes
Cognitive Intelligence
Predictive Analytics
Prescriptive Analytics
Predictive Diagnostics
Sensor based Material
Quality Inspection
Predictive Inventory
Replenishment/ Asset Track &
Trace
Dynamic pricing
Context aware intelligence
Big data strategy
Visualization & Mash-ups
Device provisioning
& Management
Fraud Analytics
Smart Phones/Devises,
Sensors, SCADA, RFID, BLE
devices , Smart ATMs,
Smart Meters, etc.
Wi-Fi, Ethernet, Blue-
tooth, BLE, GSM,
ZigBee
Enterprise Business
ProcessesData Analytics & Learning
People
Products
New Product/
Propositions Innovations
IOT Integration & Data
Collection
Security
Intelligent Processes
Integration & API Management
Enterprise Assets Mgmt
Machine
Log Data
Sensor
Data
Material
Inspection
Data
Production
Data
Complex Event Processing
Stream Computing
Real-time communication
Machine Learning
Dynamic Pricing
Real Time decisioning
Predictive Modelling
New Risk Management
Value
Chain
Enablers
“Things”
Customer Experience
Big Data &
Analytics
Sense & Collect Analyse and Act Manage and Adapt

9. 9© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Sense, Learn and Adapt Reference Model
IoT
Platform
Data Mediation and Correlation
Smart Home, Goods
and Connected
Things
Command Center
Dashboard
Sensor/Device
Management
Operation
Support
Core Systems
Operations
Third party
Distributors
& Internal
Users
End Users
API
Gateway
Event
Processing
Data Processing Pipeline
Registration
3rd Party Data
Feeds
(e.g. Location,
Point of Sale
data)
Customer Experience
Journey Analytics &
Customisation
Customer
Solution A
Customer
Solution B
Edge
computing

10. 10© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Logical Architecture View – Usage based Insurance
illustration
Servcie Center
Users
Touch Points
Insurer Systems and
User Applications
IOT Platform and
Cloud Integration
IOT Gateway Layer
Sensor Controllers
Sensors,
Devices and
Equipment's
Operations Customers Third party Distributors and Internal Users
Engage and
Inform
Manage,
Monitor,& Adapt
Analyse & Act
Integrate
Sense & Collect
Command Center Dashboard
Sensor/Device Management
Mobile Apps
Dynamic
Pricing
Quote &
Buy
Front office
Middle office
Policy Admin & Claims
Enterprise
Applications
(e.g. CRM, Analytics,
Fraud, Risk etc)
Security & API Management
Cloud Integration API Gateway
Social Data
3rd party data
Enrichment
Database
IoT Database
IoT Platform
Insurer Cloud
Applications
3rd Party Data
Communication Edge
Computing
Linux MQ Wearable Logic Edge Analytics
Water Meter
Logic
CO Sensor
Logic
Motion Detector
Logic
RFID Logic
Water Flow Meter Fire Sensor
(Co2, Gas etc)
Security Breach
Sensor
(Sound, Light,
Motion, Windows
Open Sensor)
Owner
Presence
Sensor
Devices/Sensors
(Future)
APNs
Wearable Apps
Rest API
GetHostStatus Getmonthlypremium Getannualpremium Getdailypremium Other Data Services
Rest
API
JDBC/ODBC etc
Stream & Data
Table Storage
SendEvents Secured Connection
Rest API SCP MQTT 3rd Party Zigbee
Data Processing

11. 12© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Key challenges and risks
1. Complex ecosystem
2. Security
3. Privacy
4. Liability