Insurers move beyond standalone products in shift to ecosystem solutions
Digital ecosystems offer insurers new ways to strengthen customer relationships and generate revenue. But they require substantial changes to the way those firms operate. Customer demand for digital services is pushing insurers away from standalone products toward protection and assistance solutions delivered through partner ecosystems.
Digital ecosystems offer insurers new ways to strengthen customer relationships and generate revenue. But they require substantial changes to the way those firms operate.
Customer demand for digital services is pushing insurers away from standalone products toward protection and assistance solutions delivered through partner ecosystems.
To succeed, insurance providers need to secure strong ties with product and technology partners, share data across multiple platforms, and use automation and AI to coordinate their solutions. They also must make sure their offerings are available to customers when they’re most needed.
It’s a demanding task. But the rewards for those that get it right promise to be substantial.
Within five years, around 30% of the global economy, an estimated US$100 trillion, could be generated by digital ecosystems, according to McKinsey. The company describes the emergence of digital ecosystems as the “single largest economic transformation of human history.”
“We are entering the era of the solution-oriented ecosystem,” says Kristel Lataste, Global Head of Digital Growth at Allianz Partners. [13:08]
Key takeaways
- Clients increasingly expect digital access to insurance services that are easy to reach, simple to use, and available whenever needed.
- Delivering ecosystem solutions requires insurers to build strong partnerships, share data across platforms, and use automation and AI to coordinate service delivery.
- Insurers are quickly adopting ecosystem strategies with none of the executives polled at the online event reporting that their firms are sticking with just standalone products.
- Data silos, partner alignment, legacy technology, and internal culture all need to be addressed when building ecosystem solutions.
- Regulators are critical to the development of digital ecosystems and can be growth barriers or catalysts.
- Speakers outline seven key steps to deliver successful customer-centric ecosystem solutions.
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