© CGI Group Inc. CONFIDENTIAL

Insurers and the Internet of Everything:

At Risk of Disintermediation?

Jamie Rodgers

Global Insurance Lead

CGI

CGI is a global end-to-end IT and business

process services leader

World’s 5th largest independent IT and BPS firm

100+ mission-critical

IP-based

solutions

$10B annual revenue

4,500 clients across the globe

68,000 professionals,

75% shareholders

High-end business and

IT consulting

400 offices,

40 countries around the world

System integration,

IT and business process

outsourcing

9/10 client satisfaction score for the

past 10 years

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CGI’s capabilities in insurance

35+ years of expertise and capabilities across all

aspects of the P&C and life insurance value chain,

and at the forefront in the drive to streamline,

harmonize and modernize capabilities for clients

Ratabase®–the industry’s leading rating engine with

more than 85 P&C and Life insurance installations in

North America and the UK

Provider of consulting and IT services to 7 of the top

10 insurers in the world, and more than 200 clients

globally

Systems Integrator for the world’s leading core

insurance software solutions

More than 15 million transactions and information

products delivered annually as part of core

underwriting processes

1,500 members dedicated to IT outsourcing and

application management services globally, and 3,500

members in total focused on Insurance

Credentials Clients

Ratabase® is a registered trademark of CGI Group

Inc. and its related companies.

Hypothesis “The Internet of Everything has the power to disintermediate Insurers

from the risks they’ve always insured.”

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Assumption “People will continue to want to insure the things of value that they own.”

Insurer Policyholder Thing of

Value

Insurance

• Historical focus

• One size fits many

• Few customer touchpoints

Insurer Policyholder

Sensored

Thing of

Value

Data

Processor

Insurance

• Real-time focus

• Customization

• Many touchpoints

What is the Internet of Everything?

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The Internet of Everything (IoE) is a world

where smart objects are seamlessly

integrated as part of a global network; where

smart objects interact without human

intervention to deliver new services or

improved processes. IoE redefines the way

humans and machines interface and the

way they interact with the world around

them.

Set for Rapid Growth

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Sources (top left and then clockwise): Analysys Mason, 2013; Berg Insight, 2013; Forrester 2011; Frost & Sullivan, 2012.

Usage Based Auto Insurance is Just the Start

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Relevant Risk Data that could previously only be

assumed – mass customization

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Source: IEEE Intelligent Transportation Systems Magazine, July, 2014

What else might Insurers be interested in tapping?

Thing Sensored Risk Data Captured Insurance LoB

Building • Presence

• HVAC

• Basement water

• Power

• Air quality

• Smoke and Fire

• P&C

People • Activity levels

• Activity context

• Physiological data

• Sleep patterns

• Health

• Life

• Travel

Machine • Hours of operation

• Temperatures

• Maintenance activity

• Business Interruption

• Commercial Liability

• Warranty

City • Traffic

• Crime

• Air quality

• Snow accumulation/removal

• Demographics

• P&C

• Life

• Health

• Annuity

Agriculture • Crop health

• Water levels

• Crop/Forest insurance

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Valuable Data from Sensors goes Somewhere

and someone’s doing something with it

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Beware the Auto Manufacturers?

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Beware the Drone Manufacturers?

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Beware the Big Data Analytics Firms?

• Started by ex-Google employees

• Sells Crop Insurance

• Platform ingests weather measurements from 2.5 million locations,

150 billion soil observations to generate 10 trillion weather simulation

data points every day

• Manages over 50 terabytes of live data in its systems at any given

time

• Pays claims whenever specific weather events occur, automatically

• Purchased by Monsanto in 2013 for $1.1B

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Some are Getting it Right

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Some are Getting it Right

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Some are Getting it Right

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Some are getting it right

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Courtesy: Tokio Marine

Can you use my data to offer improved products,

offers or advice?

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CGI: Understanding Consumers in the Digital Era, 2014

Uncertainty Drives the need for Innovation – going

forward it will be for more than just technology

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Insurers can be at the centre of the Internet of Everything

The Internet of Cars

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