We live in a world where there is very little that hasn’t been disrupted by digital transformation and technology. The insurance industry has adapted to these changes and moving towards transforming their business through various means, one of them being InsurTech. Another being the ecosystem. These two are actually taking them beyond digital and will help them sustain in the long run
An ecosystem is basically an interconnected cluster of products or services that allows customers to fulfill their needs. The entire process offers a seamless experience for them, which in turn leads to heightened satisfaction towards a brand. These ecosystems go beyond simple partnerships and collaborations; it brings towards the various digitally accessible offerings and is all about providing the customer a memorable experience, which subsequently leads to customer retention and business growth.
The Rise of Ecosystems
When talking about the ecosystem, there are a few companies that have established themselves quite well – Facebook, Amazon, Apple, Alibaba, and Microsoft to name a few, which goes to show the power of digital.
A research study from McKinsey has discovered that the ecosystems are likely to generate nearly $60 trillion [in revenue] within the next 5 years. This will account for about 30% of the global sales [for that year]. Insurers too are looking at the world beyond digital; they are working towards understanding the evolving market, the growing threats and opportunities that arise from the competitors across insurance categories. Having been in the digital insurance space for a while, Neutrinos recently announced a partnership with eBaoTech; a leading provider of innovative insurance software and services that delivers advanced digital insurance applications to insurance carriers and brokers/agents. The applications will be powered by eBaoTech’s insurance Platform as a Service (PaaS) – eBaoCloud InsureMO and Neutrinos’ Low Code Multi-Experience Development Platform (MXDP).
The InsurTech Ecosystems
One of the biggest growing trends in the current year is said to be ‘InsurTech ecosystems’ when it comes to the business of insurance. While it is a rough and tricky path to tread, the insurance leaders and insurers are taking small steps towards building successful InsurTech ecosystems. If you look at the current generation, Millennials thrive on – customization of service/products and intuition. The ecosystem needs to therefore be customer centric, and embrace changes in technology to offer personalized and better products to the customers.
Insurers have shifted their focus from products to customers and the entire value chain. That said, their main focus areas are on the property and casualty insurance followed by health & life [as shown in the image above]. While innovation from insurtechs aims to make a significant contribution to the entire insurance value chain, insurers are encouraged to view potential partnerships with these InsurTechs as one that will help transform their business for the better.
As a Gartner recognized low-code, multi-experience development platform, Neutrinos offers an array of digital insurance distribution solutions. Neutrinos is helping insurers rapidly build applications on disruptive technologies, cater to customer demands, and future proof their businesses. A partnership with eBaoTech to build Omni-channel applications across the insurance value chain will make a big difference. Visit neutrinos.co for more insights/assistance..
In the second part of this series, we shall talk about the risk elements and analysis, how they alter the role of an insurer… What are your thoughts on this whole ecosystem & its impact?
To be continued…