The insurance industry is moving, like other industries, towards an ecosystem model to meet emerging trends.
The COVID-19 pandemic has acted as an accelerant, forcing the insurance industry to be faster in responding to the changing technology and business landscape driving the need to rethink and redesign the way they operate. For this reason, the insurance industry is moving, like other industries, towards an ecosystem model to meet emerging trends, having technology as an ally to continuously evolve the insurance business.
This impact on the insurance industry has been from several perspectives. It has accelerated many processes and caused many companies to take the path of digitalization. Insurers have sought to adapt to the new digital context, in which they have changed traditional processes to continue to provide value and be more efficient today. Therefore, technology continues to drive the transformation of the industry; bringing new opportunities, social changes, and new solutions to comply with consumer expectations.
The new way of redesigning and rethinking traditional insurance products and services represents a turning point in the way companies.
The new way of redesigning and rethinking traditional insurance products and services represents a turning point in the way companies put the customer at the center, but the difference today is that thanks to technologies we can have a greater knowledge of customers and that forces us to generate unique and liquid experiences, the new normal for digital customers.
The insurance value chain has totally shifted its DNA and its mission, from protecting and serving to preventing and predicting activity.
These transformation entails another big change for the insurance industry, the fragmentation of the value chain. The insurance value chain has totally shifted its DNA and its mission, from protecting and serving to preventing and predicting activity, being able to adapt its value proposition to the new uncertain, volatile, and changing contexts as well as to the new habits, values, and behaviors of its clients.
We are talking about a totally dynamic, embedded process, accelerated by data and by the constant changes demanded by customers. For example, according to our circular value chain framework, the process can begin by designing a product, managing a claim, administrating a policy, or it can address them all at once.
For all this evolution to occur, it is necessary for insurers to be ecosystem-ready companies. Before this, insurers will have had to focus on the modernization of their traditional IT Landscape, to facilitate collaboration with other players in the ecosystem to be open and secure at the same time. The IT modernization is taking shape towards building scalable and flexible API-based architectures that will create enhanced data management and analytics capabilities that lead to a personalized customer experience.
The insurance industry will continue to change in the current context and will evolve towards Open Insurance. This evolution will only be possible if insurers are truly capable of generating value in a liquid, fast and embedded way hand in hand with other players such as Tech Giants or other industry giants in a new field of play, the new digital ecosystem platforms.