The Industrial Age created a new type of economy where the supply chain became more important than ever. The industry needed coal for steam engines, power looms, steamboats, ships and trains. Photogenic use increased, so refineries increased in number. But the most powerful people in the company realized that owning a commodity business was just as safe as the delivery lines that carried it. Magnates, such as Andrew Carnegie, John D. Rockefeller and Henry Ford, made sure they owned pipelines, refineries and related business interests in oil, steel, transportation and manufacturing. These may not have been called ecosystems at the time, but they were really a hint of things to come.
Flash forward to the digital age with computers, software, the internet and another set of powerful ecosystem creators. Steve Jobs, Bill Gates, Larry Page, Sergey Brin and Jeff Bezos could have been satisfied with less competitive shares in their industries. Yet, each of them somehow realized that their business value would be best applied if they could cross industries, cross platforms, integrate technology, and connect people and products in ways they did not connect before. Apple redefined the customer's ability to customize the user experience. Microsoft, Google and Amazon are still struggling to push the boundary between monopoly and ecosystem, yet they have undoubtedly enabled organizations, such as insurance companies, to connect their value and innovation to a broader supply spectrum.
Here is where insurance is in the 21
So where are insurance companies drawing their own lines? Or should they erase the lines they have already drawn?
In Majesco's latest thought management report, Review of car insurance: From a 120-year policy transaction to a next gene mobility Customer Experience we take a close look at the pressure on car insurance. In my latest car insurance blog, we cataloged these prints to see why change needs to happen. In today's blog we look at the practical answer. What are the opportunities for insurance companies that listen to the customer's feeling and use it to clearly define their roles in mobility ecosystems? Can we learn from the current development of the mobility ecosystem?
Swiss Re's 2019 report, Digital ecosystems: expanding the boundaries of insurance value creation noted that ecosystems can be structured in broad clusters, such as "Home & Residence" and "Lifestyle "on the B2C page, and" Build / produce "and" Deliver "on the B2B page. Within these clusters, finer cores can be defined, such as "Mobility" or "Transport & Logistics." Insurance fits into the risk mitigation component of most of these ecosystem domains, including mobility, healthcare, and housing. [i]
In this new interconnected world, insurance will play within these ecosystems rather than just exist as an industry and silo for itself. Insurance companies can join these ecosystems in different ways. They can create a uniform policy to cover all modes of transport that a customer uses, rather than separate policies for each. Or they can provide risk protection services as part of an ecosystem that provides a broader commitment and experience for all the "jobs" a customer needs to get done over their mobility customer journey … "a single window of interaction that eliminates friction points between the different participants in the ecosystem. ”[ii] (See fig. 1)
Figure 1: The role of insurance in a mobility ecosystem
Source: Swiss Re Institute
Mobility Ecosystem Market Opportunity
Insurance customers prefer the idea of an integrated, holistic ecosystem approach to the interconnected tasks that make up their mobility journey, as illustrated in our survey results. Companies that can achieve early entry into this space have a huge opportunity to create, own and grow a loyal base of current and new customers.
Given the nature of ecosystems, insurance companies can assume several roles from the owner of the unifying platform, to orchestrator of the products and services, or the supplier of products and services. This requires leadership with an appetite for taking informed risk, an ability to move quickly, the ability to build partnerships within and outside insurance and strong technology capabilities. But most important is a clear vision of the customer's mobility journey and the ability to unite the ecosystem for partners, products, services, data and technology that allows the customer to fulfill all their mobility needs in a holistic and satisfactory way.  The Desire for Mobility Ecosystems
Currently, a customer must go to several different locations to meet their mobility needs. Our research identified 19 such mobility-related needs. We asked customers how useful it would be to have a single source (an app or portal) to access the information and complete these mobility options. Analysis of their responses identified five "job groups."
As shown in Figure 2, three of the groups are extremely popular with both Gen Z and Millennials and Gen X and Boomers, with up to 70% or more indicating that they would like Local discounts, driving and travel tools and vehicle health included in app. Gen Z and Millennials also considered the other two working groups to be useful, payments and paperwork (59%) and other mobility modes (45%), but their older counterparts did not feel as strongly about these (50% and 29%, respectively)  Figure 2: The utility of a single source for managing "workgroup" mobility
All options in Driving & Trip Tools were considered very useful, including Emergency Road Assistance Navigation / Maps and Vehicle Location / Parking Reminder .
While emergency road assistance has been around for many years, the other services have developed rapidly with the newer mobility technology. As an example, parking is often one of the biggest driving headaches. Mapping and image data features allow customers to offer a solution that can identify open parking spaces and streamline the entire parking experience that can save time and money for drivers and fleets, reduce congestion and pollution, and make the experience more enjoyable.
Between 60-64% of those surveyed said that fuel economy / expense tracking and automatic registration and payment options would be useful. 61% of Gen Z and Millennials said access to a dashboard for their driving behavior and car insurance payments would be valuable, compared to 53% of the older generation. In addition, the younger generations want to be easy to pay off their car loan or rental agreement (50% versus 36%).
Gen Z and Millennials clearly see the value of using an app to book hotels, book flights, purchase passports for local transportation systems, reserve and pay for vehicle rentals, and book and pay for rideshare services, with an interest rate level of 40 -53% compared to 28-35% for Gen X and Boomers. Reserving and paying for bicycles or scooters has a strong interest of 35% for the younger generation.
The importance of mobility and the utility of an integrated ecosystem approach to mobility for Gen Z and Millennials is underscored by their willingness to pay for it. At least 40% of the younger generation segment would pay $ 10 a month.
Given the diversity of interest in the mobility jobs, it will be important to let customers pick and choose their options within a service, ensuring personalization according to their needs. This concept is what Apple introduced with the Apple App Store and what Majesco Digital1 st ® EcoExchange offers – provides access and revenue opportunities within the ecosystem.
The Rise of Mobility Ecosystems
In SVIA's February 2020 OnDemand event, Dr. Evangelos Avramakis of Swiss Re discussed the ecosystem concept and shared examples of companies that already did it – and did it in addition to mobility. [iii] One of these mobility companies with a broader service focus is Gojeck, an Indonesian company.
Gojeck started in 2010 as a motorcycle shipping service and has been developed into a suite with more than 20 services for millions of customers across Southeast Asia. They create a seamless experience and also provide a positive socio-economic impact for millions of their partners (drivers, merchants, service providers).
Who else enters the mobility space?
Other "traditional" companies enter the mobility space in the United States and Europe with new business models. They use their customer relationships, big customer data, technology and ecosystems to create new customer experiences. These are potentially even more threatening for car insurance companies.
In 2015, 107 years after the first Model T rolled off the assembly line, Ford announced that it considered itself a mobility company rather than a car company. In early 2016, they established their Smart Mobility business to lead the development of new business models for the future. [iv] In April 2019, they started a distinctly different division to represent all future business areas, including micro mobility, non-emergency medical transport and city solutions. During this time, they also acquired a scooter sharing company, Spin. [v]
In February 2020, they introduced Ford Insure in collaboration with Nationwide, which offers insurance that allows customers to get discounts for safe driving. [vi] Ford Insure works with FordPass ™ app 2020 model year Ford vehicle to monitor customer driving behavior and calculate data based discounts.
In April 2019, the General Motors Company announced it changed its name to General Mobility, a historic change for the 110-year-old company recognized as a pioneer in the automotive industry. The name change was made to better reflect their strategy and direction in a rapidly changing world. [vii]
GM's OnStar service has been expanded to include new services such as real-time vehicle diagnostics, dealer service announcement and Smart Driver, which rates drivers based on driving information with the focus on improving driving and overall vehicle performance, reducing wear and tear and improving fuel efficiency. Drivers can share their driving results to get potential insurance discounts from participating insurance companies. [viii]
In less than a decade after its launch, Uber began rolling out new services including UberX, UberPool, Uber Express Pool, UberEats, Uber Shipping, and shared electric bikes through the acquisition of Jump Bikes. They have since expanded to allow customers to rent a vehicle through UberRent in collaboration with peer-to-peer car sharing startup Getaround. And in collaboration with Masabi, a mobile payment system for public transport systems in major cities around the world, customers will be able to buy and use public transport tickets from their Uber app.
In addition to expanding its platform to include bicycles, scooters and public transport, Uber is considering allowing third-party autonomous vehicles on its platform. Essentially, as an August 2018 Automotive News article points out, Uber, via its multimodal "mobility" app, is quickly heading for a final position that more closely reflects Amazon's online marketplace than an autonomous cab service. [ix]
If there is an Amazon-like threat to car insurance companies, Uber may have taken the right combination of services to appeal to consumers quickly.
Next Mobility Step for Car Insurance Companies
How do car insurance companies (19659006) personal and commercial) keep management's options open to the products they produce? How do they grow, own and retain a customer base that trusts them for a broader mobility need? Innovation is the key to the development and use of ecosystem mobility. Insurance companies that can quickly innovate around new services, new products, improved channels and improved customer experiences are the ones who capture the opportunities that mobility offers. Since vehicle use is globally in flux, car insurance companies must assess how they can protect and serve across the full spectrum of transport choices.
Car insurance companies must make some future thoughts about real-time risk assessment and review literal customer journeys to find areas where value can be added by creating new products, offering new services and enhancing experiences and engagement through tools such as Majesco P&C Core Suite Majesco Digital1 st â Insurance. They must carefully examine technologies and platforms that are built for plug and play ecosystem design, and they must have some important conversations about how willing the company is to take advantage of business model shifts that a mobility ecosystem will require.  [i] "Digital ecosystems: expanding the boundaries of value creation in insurance," Swiss Re Institute, January 2019
[iii] Digital Ecosystems & Insurance: Strategies for Innovators, SVIA, February 11-12, 2020 , https://sviaccelerator.com/digital-ecosystems-insurance-strategies-for-innovators-2020-01/isie19659002????1919909021] Abuelsamid, Sam, "Ford & # 39; s Farley On Building Mobility Technology And Services Amid Auto Industry Disruption, "Forbes, October 21, 2019, https://www.forbes.com/sites/samabuelsamid/2019/10/21/fords-jim-farley-on-building-mobility-technology-services-and-brands / # 1bb322ad99a8  [v] Koenig, Bill, "Ford, Declaring Itself and Mobility Company, Audits and Old Strategy," SME, November 8, 2018, https://www.sme.org/technologies/articles/2018/november/ford -declaration-self-a-mobility-company-audited-an-old-strategy /
[vi] “Ford, Lincoln Works with Nationwide to provide affiliate insurance programs Vehicles Designed to Reward Safer Driving, ”Ford Web Site, February 21, 2020, https://media.ford.com/content/fordmedia/fna/us/en/news/2020/02/21/ford-lincoln-nationwide -insurance.html
[vii] Luft, Alex, "General Motors Renames General Mobility," GM Authority, April 1, 2019, https://gmauthority.com/blog/2019/04/general-motors-changes -name- to-general-mobility /
[viii] “OnStar Smart Driver,” GM Authority, https://gmauthority.com/blog/gm/general-motors-technology/onstar/onstar-smart-driver/ Chapter19659002] [ix] Silke Carty, Sharon, et al., "Uber's Strategy Shift," Automotive News, August 23, 2018, https://www.autonews.com/article/20180823/MOBILITY01/180829859/uber-s-strategy- shift