However, some insurance industry specialists doubt that technology companies will enter the heavily-regulated insurance sector directly, seeing them as more likely to form partnerships with insurers, potentially giving those firms an advantage.
In the United States, Liberty Mutual has already joined up with Nest to offer insurance discounts for Nest users.
"Google will not become an insurance underwriter," said Nigel Walsh, head of U.K. insurance at Capgemini.
But with products such as Nest, "they are a massive part of the insurance value chain, because of what they know about consumers," he added.
The insurance industry also needs to improve its service if it is going to win business among younger customers.
Only 34 percent of customers below the age of 35 reported positive experiences with their insurers, compared with 55 percent of over 35s, a Capgemini survey of more than 15,000 customers in 30 countries found.