قالب وردپرس درنا توس
Home / Insurance / The ultimate guide to open insurance

The ultimate guide to open insurance



Highlights

Open insurances give insurance companies an opportunity to significantly improve their products and services while opening up many new revenue streams.

Transport companies can take advantage of the huge flows of real-time data that open up insurance solutions to launch a lot of new customer offerings.

The "network effect" that occurs in open insurance gives insurers who are early movers a number of new business opportunities.

The increase in open banking gives carriers valuable insight into how open insurance is likely to affect their companies.

Introduction

The insurance industry is facing more disruption than almost any other sector. Advances in digital technology, increased competition from innovative and flexible competitors and flat investment returns force insurers to radically change their business (see our Disruptability Index).

Many insurance providers are looking for digital ecosystems to give them flexibility and customer reach. they need to thrive in the post-digital era where digital technology is everywhere. Our research shows that 75 percent of insurance companies expect ecosystems to deliver at least half of their revenues within five years.

In order to unleash the potential of ecosystems and thereby generate strong growth and build sustainable asset value, insurers must take an important opportunity. ̵

1; open insurance.

Questions answered in this ultimate guide

What is open insurance?

Which insurance companies have taken out open insurance?

Why does open insurance matter?

How can insurers benefit from open insurance?

What can insurance companies learn from banks about open insurance?

Will regulators force insurers to adopt open insurance?

What role do digital ecosystems play in open insurance?

Why are application programming interfaces (APIs) important for open insurance?

What is the best application programming interface strategy (APIs) for insurance companies?

What is the best digital ecosystem for open insurance company ance?

How can insurance companies use digital ecosystems to grow their open insurance business?

Why are only a few insurance companies running successful open insurance companies?

How can insurers use ecosystems more efficiently?

What companies make good open insurance partners?

What is open insurance?

Open insurance is a new way of doing business that enables insurers to increase revenue, increase efficiency, gain business partners and reach many more consumers. It requires operators to open their data resources to other organizations and to share and consume data and services from many sources and across many industries. This enables insurers to create new value propositions, generate new revenue streams and deepen their relationships with customers.

Open insurance business models must address the three key functions of a computer company – consume, share and collaborate.

Click / press to view larger image

Which insurance companies have taken out open insurance?

Open insurance is only beginning to make its mark on the insurance industry. But some far-sighted insurance companies have already begun to adopt open insurance. They take advantage of the large data flows that now travel across digital ecosystems. Open insurance pioneers include:

Ping An in China opens parts of its IT infrastructure and systems to monetize its computer resources. It builds open platforms, supported by new technology, that are accessible to many participants in industries such as financial services, car repairs, healthcare and real estate.

The United Kingdom Anorak has partnered with fintech company TrueLayer to use data analytics and machine learning to assess large amounts of consumer data and provide customers with insurance advice and recommendations.

Reliance Partners in the USA works with the supply chain technology company Project44 to offer real-time freight insurance to carriers and logistics service providers. Their open insurance service makes it possible for customers to get a quote and buy protection when they book their deliveries.

Wakam, formerly known as La Parisienne, is a French-based insurance company offering over 50 open insurance APIs. It is rapidly scaling up its open insurance model across Europe and working with highly visible companies such as the IoT network provider Sigfox to offer connected insurance solutions. Wakam reports that its integration platform as a service (iPaaS) currently handles more than ten million API requests per month.

Why does open insurance mean?

Rapid advances in technology and rapidly changing market forces are causing widespread disruption in the insurance industry. Open insurance gives insurers an opportunity to significantly improve their products and services while opening up many new revenue streams. Transport companies that quickly accept open insurance get a significant advantage compared to competitors who are slow to respond or remain locked into traditional business models.

How can insurers benefit from open insurance?

Open insurance offers insurance providers a number of new business opportunities. Here are some of the key benefits:

Innovative customer suggestions.

Transport companies can take advantage of the huge flows of real-time data that open up insurance solutions to launch a host of new customer offerings. They can significantly improve the customer experience by using real-time data and analytics systems to deliver on-demand, customized services and experiences with varying pricing. Insurance rates can, for example, be assessed much more accurately using automated systems for processing large amounts of customer information and related data to measure risk. This improves the insurer's risk management, replaces cumbersome and inefficient manual estimates and processing and enables customers to benefit from coverage tailored to their specific needs. -added offers delivered by business partners outside the insurance industry. Insurance providers can increase their interaction with customers and encourage their customers to share their data by offering them extra services or better rates. New real-time risk protection and reduction services, for example, will not only improve customers' perceptions of the value they receive from their insurance companies and thus increase the retention rate. They will also improve insurance providers' risk management and reduce their loss ratios. Both customers and their insurers will benefit from this open "insurance circle".

Open insurance will create more opportunities for consumers to benefit from sharing their data with service providers. They will be able to make better, more informed decisions about their insurance needs. For example, policyholders may be able to identify where they are underinsured and require additional protection.

New models for partnership and distribution.

Open insurance gives carriers a larger market for their products and services. This enables them to expand their distribution footprint beyond their traditional markets by securing alliances with new business partners. They can then integrate their products with their business partners' non-insurance offerings to deliver a broader and more enticing seamless customer experience.

The more partners and customers that insurers gain through their open insurance initiatives, the more attractive they become to potential new partners. The "network effect" that occurs in open insurance gives insurers who are early movers a lot of new business opportunities. They will have more to offer potential partners than insurers who were slow to adopt open insurance.

Extra sources of income.

Insurers who join open insurances can better make money from their own information and data services. For example, they can use their extensive technology infrastructure to provide other organizations with transaction services. Alternatively, operators can use application programmable interfaces (APIs) to offer other companies special applications such as payment services, risk analysis or customer acquisition.

Open insurances enable insurers to create new revenue streams by positioning themselves earlier in their customers' purchases. processes. For example, greater access to customer information in real time gives insurers the opportunity to warn policyholders about appropriate risk management solutions as soon as their circumstances change. They will then be able to move quickly to give customers the protection they need. Such changes may include changing jobs, moving home, taking vacations or buying a valuable asset.

Open insurance enables carriers to increase their revenue streams by providing their customers with value-added products and services sourced from their ecosystem partners.

Business Improvements.

The network of alliances and business partnerships that underpins open insurance allows insurers to quickly track product innovation. They can take advantage of the expertise and resources of their partners to quickly design, develop and launch products and distribute them quickly to a large number of consumers. Traditional bottlenecks, created by older systems and outdated processes, can be quickly circumvented.

Open insurances give insurers significant savings in operating costs. These can be achieved through improved transaction speeds and efficiency, reduced development and maintenance costs, reduced data duplication, reduced fractional costs and the roll-out of automated direct processing.

Operational improvements achieved through open insurance are likely to ripple the insurance value chain. For example, improvements in an insurer's processing efficiency will often be disseminated to the business of its business partners and intermediaries.

The image below shows some of the many applications of open insurance.

Click / press to view larger image [19659056] What can insurance companies learn from banks about open insurance?

Legislation in Europe and the United Kingdom forced banks to open up their data resources and share customer information with other organizations. The European Union's revised Payment Services Directive (PSD2) and the UK's open banking standards require banks to give other financial service providers access to their customers' banking information if account holders give their consent. Banking supervisors want to encourage innovation and competition. Similar rules for open banking exist in Australia and may soon be introduced in Canada. We estimate that open banking initiatives in Europe will generate close to € 61 billion this year. That would be about 7 percent of the region's total bank revenue. Almost all major banks in Europe make large investments in open banking.

Progressive banks, start-ups, lenders and payment companies in Europe and the UK moved rapidly when the open banking laws were proposed in 2015. They built platform companies that took advantage of the availability of growing volumes of consumer data. By linking to expansive digital ecosystems, these new companies can join many data providers and offer customers enticing data-rich products and experiences. In addition, they were able to use these ecosystems to collaborate with new business partners and, through these alliances, provide their customers with additional offers that often extended beyond banking. Foresighted companies in the banking sector also used their new platform companies to build innovative value propositions that enabled them to take advantage of market disruptions and take advantage of unforeseen opportunities. to influence their business. Important take-away includes:

  • Customer expectations will increase. Open banking offers banking customers a range of new data-rich services and experiences. Many of these customers also buy insurance. They want their insurance companies to match or enhance the digital experiences they get from other service providers. Insurers need access to larger amounts of data from more sources. If they do not, they will not be able to deliver new digital offerings that their customers will require.
  • Digital technology will pump up data flows. The advent of the post-digital era, in which digital technology permeates all aspects of life, has increased the amount of data available to service providers. Data traffic across ecosystems continues to climb. Open banking has shown how financial service companies can monetize their data resources and take advantage of the value of data held by other organizations. Carriers should not underestimate the importance of this critical resource. Those who do are likely to slip behind their competitors.
  • Business models will change. Open banking has forced banks to find new ways to interact with customers and partners (see illustration below). Open insurances will put similar pressure on insurers. Brokers and other intermediaries are particularly vulnerable. They need new business models that enable them to thrive in the ecosystem economy.
Click / press to view larger image
  • Industry disruptions will escalate. Open Banking exposed traditional banks' payment companies to severe disruptions. Fintech companies and other newcomers to the industry now dominate this sector of the banking market. These agile disruptors are beginning to turn to other sectors. They use innovative technology to offer consumers a variety of new financial services. Open insurance will first disrupt product distribution and customer acquisition. However, it will soon trigger upheavals in other sectors. Transport companies should prepare for increasing disruption in the industry by increasing their ability to innovate, cooperate and adapt. Business flexibility will be crucial.

Will regulators force insurers to adopt open insurance?

Regulators are unlikely to force insurers to follow banks' examples and open their computer resources to other organizations soon. But other disruptive forces are already urging insurers to share more data. These forces are likely to drive the growth of open insurance. They include:

  • Increasing consumer demand for integrated, personal, data-rich digital services.
  • Growing competition from technology companies offering insurance products along with other digital products and services.
  • Increasingly potent digital ecosystems that often include insurance products and services in their consumer offerings. Our research shows that insurers believe that the increase in ecosystems will be one of the biggest causes of disruption for their companies over the next five years.

What role do digital ecosystems play in open insurance?

Digital ecosystems are essential for open insurance. They provide routes that transport huge volume data between insurers and their partners and customers. Open insurance enables insurers to take advantage of the large flow of data across ecosystems to improve their customer offerings, increase their business partnerships and reach a large number of consumers. Insurance providers do not need to own the technical platforms that support these digital ecosystems. But they must have a clear ecosystem strategy that supports their open insurance models. This strategy should show why the company adopts open insurance, identify the types of ecosystems that best support this goal and define the roles that the insurer will perform within their chosen ecosystem. The strategy may require an insurance company to own or control the technology platforms that underpin their ecosystem activities. It will often enable insurers to run their open insurance initiatives across ecosystems maintained by a trusted technology partner.

Why is the application programming interface (API ) crucial for opening insurance? [19659002] APIs are the key to the development of open insurance solutions. They enable insurers and other organizations to open their data, algorithms and processes to each other. This enables companies connected to the same ecosystem to integrate each other's data resources into their own digital services and experiences. The proliferation of APIs dramatically increases the amount of data traffic flowing across ecosystems. As data volumes increase, so do the opportunities for companies to create added value from the ecosystems they operate.

The business benefits of APIs are significant. They enable insurers to quickly build robust technology platforms that can consume and share large amounts of data and link large numbers of partners and customers. This allows them to streamline their processes, improve efficiency and accelerate innovation. The time to, for example, design, develop and launch new products is significantly reduced. Insurers can also collaborate with new business partners faster, gain faster access to a large number of additional customers and deliver more attractive data-rich products and experiences. The research company Celent believes that insurers that do not incorporate APIs into their technology platforms will cease to be competitive.

The number of APIs available to insurers is a fraction of what is offered in the banking sector (see illustration below). Companies in the banking sector have had an advantage over insurance companies due to the implementation of open banking rules. However, interest in APIs for insurance is growing rapidly.

Click / press to view larger image

Most insurance APIs currently focus on customer engagement. They support customer acquisition or product distribution solutions. But many more insurance applications will soon be available. This means that many companies from many different industries can join insurance data providers. Front runners include distributors of motor vehicles, travel companies and healthcare providers (see image below). These companies will be able to collect insurance products with their own offers. They provide customers with a seamless portfolio of data-rich services.

Click / press to view larger image

What is the best strategy for application programming interfaces (APIs) for insurance companies?

Insurers need a strategy that enables them to quickly build, publish, and install a large number of APIs. It should address four important steps:

  • Relax Technology Architectures. To extract value from their traditional technical resources and increase their business flexibility, insurers need to add a new layer of disconnected digital components between their core systems and their applications. An API-enabled architecture, which can connect many different systems and applications, enables operators to quickly access the data resources they need to collaborate with new partners and take advantage of promising business opportunities.
  • Adopt a cloud-first approach. Cloud computing gives insurers the opportunity to quickly develop and launch new products, roll them out to a large number of customers and, if necessary, transfer them to other technology platforms.
  • Collaborate with third parties. Increased collaboration with third parties, such as insurtech companies, incubators, academic institutions, research companies, data providers, public utilities and business partners, improves creativity, accelerates innovation and creates new revenue opportunities.
  • Design for reuse. Insurers should make sure that the APIs they develop are easy to use and highly portable. By publishing these APIs and making them easy to find, insurers can encourage other parties to become their ecosystem partners and provide complementary products and services.
  • Implement an API platform. This gives internal teams and partners the tools and functions they need to make the best use of the organization's APIs. An API platform typically combines four main components: an external partner developer portal to leverage your existing APIs; an API management portal for publishing APIs, monitoring usage and managing invoicing; a security layer; and a port for accessing internal resources.
Click / press to view larger image

What is the best digital ecosystem for open insurance?

Insurers must choose a digital ecosystem that meets their specific open insurance objectives. They should be clear about the type of business they want to conduct. Do they want to become cheap service providers and act as tools, for example, or do they see open insurance as an opportunity to expand their companies beyond traditional insurance business? Insurance companies that plan to become tools can use open insurance to take advantage of their current efficiency for operation and processing. They can generate additional revenue by providing data services to a variety of insurance companies and other organizations. Alternatively, airlines wishing to go beyond insurance can use open insurance to introduce a range of new digital products and services. By opening up their data resources and exchanging information with many different parties, they can deliver offers that go far beyond the portfolio of products traditionally provided by insurance companies. The picture below shows this initial dilemma that insurers must resolve before continuing to enter into open insurance.

Click / click to see larger image

Insurers who see open insurance as a way to expand and expand their product range must carefully assess their current capacity before starting new ecosystem companies. They should identify the ecosystem opportunities they can exploit with their established assets and resources. Only when they have completed evaluating these possibilities should insurers turn their attention to ecosystem investments that may require additional infrastructure and resources. We have identified seven major ecosystem opportunities for insurers (see illustration below). Each of them enables insurance providers to use open insurance to enter new markets and expand their product range. We believe that revenues from these seven ecosystems could reach $ 50 trillion by 2025.

Click / Click to View Larger Image

All of these ecosystems create value for insurers, their partners and their customers. They achieve this by:

  • Providing customers with a simple "frictionless" gateway to a variety of digital services.
  • Leverage the "network effect" that works across platform companies and deliver greater value to each ecosystem participant as data traffic. increases.
  • Encourage the flow of large amounts of data between a large number of ecosystem participants.
  • Spans one or more technology platforms managed by trusted service providers.

How can insurance companies use digital ecosystems to grow their open

Once insurers have chosen the ecosystems that best suit their open insurance objectives, they must choose the role they want to perform within these ecosystems. A clear understanding of these roles will enable carriers to galvanize their resources and grow their open insurance companies. Many insurance companies have already identified the ecosystem roles that enable them to develop strong open insurance companies.

  • Ecosystem Initiator. Large insurance companies such as Ping An have built their own extensive ecosystems. These sprawling ecosystems generate huge volumes of data traffic and deliver a wide range of products and services. Such insurers are custodians of their ecosystems. They deliver a wide range of their own products and services across their ecosystems but also host offers from many other organizations.
  • Ecosystem orchestrator. Carriers such as USAA and Discovery have built strong ecosystem companies by improving their own offerings with products and services from other suppliers. This increases the value that these carriers give their customers while generating more revenue for themselves and their partners.
  • Ecosystem Player. Some insurance companies, including Zurich and Groupama, have built successful companies on ecosystems managed by other companies. They have tailored their digital insurance offerings to suit these specific channels.
  • Ecosystem Contributors . La Parisienne is one of several companies providing IPaaS (insurance-as-service) offerings to ecosystem operators. Such IPaaS offerings include e-commerce, payments and analytics services.

Why are only a few insurance companies running successful open insurance companies?

One of the biggest challenges for many companies wishing to establish open insurance companies is their lack of ecosystem features. Many insurers believe that they have the ecosystem skills and resources they need to run an open insurance business. However, our research shows that most of these companies significantly overestimate their preparedness. For example, 84 percent of insurers identify ecosystems as an important part of their strategies. And 58 percent of insurance providers have even begun to strive for ecosystem strategies. But we found that less than 5 percent of insurance companies have what it takes to run an ecosystem-dependent business.

Where are the shortcomings? Most insurers have not developed the right ecosystem strategies. They also lack the skills they need and lack the necessary organizational structures and cultures. In addition, many insurers do not have the technical architectures they need to support ecosystem initiatives. These shortcomings place insurers far behind their peers in the banking and telecommunications industries (see illustration).

Click / press to view larger image

There is another trip. Insurers are often reluctant to share their information. Open insurance requires that transport companies exchange large amounts of data with several partners. Nevertheless, insurers have long viewed their data as a valuable property right that gives them an advantage over competitors. To take advantage of open insurance, such carriers must make a reverse turn. They must be willing to share information and to exchange it responsibly and securely. This requires a major cultural shift.

How can insurance companies use ecosystems more efficiently?

Many insurance companies will need to change their business so that they use ecosystems more efficiently and launch successful open insurance initiatives. They should focus on three key areas:

  • Carriers involved in open insurance need robust and flexible technology architectures that can handle large, variable and fast data flows. These architectures should disconnect core systems, support powerful application programming interfaces (APIs) and incorporate cloud-based resources.
  • Open insurance requires insurers to nurture workforce that excels in creative thinking and problem solving. A culture of continuous improvement and flawless innovation is crucial.
  • To succeed with open insurance, carriers must create collaboration strategies that guide them as they navigate new business relationships and creative collaborations. They should be flexible enough to accommodate many different partnerships and to take advantage of unexpected opportunities.

Which companies make good open insurance partners?

Good ecosystem partners are crucial to the success of open insurance. De ger försäkringsgivarna tillgång till stora volymer värdefull data och gör det möjligt för dem att nå många fler kunder. De kan också förse försäkringsbolagen med ytterligare digitala tjänster som kompletterar deras egna erbjudanden och förbättrar kundupplevelsen. Dessutom kan samarbete med innovativa partners ge försäkringsgivarna en mängd nya affärsmöjligheter.

Det är dock inte lätt att välja rätt öppen försäkringspartner. Processen för att hantera en spridning av olika ekosystempartners är inte heller (se illustrationen nedan).

Klicka / tryck för att se större bild

Försäkringsgivare bör utforma en omfattande strategi som styr deras val och hantering av öppna försäkringspartners. Det måste skilja sig från standarddistributionsavtal och rymma nya typer av partners som nystartade företag, insurtech-företag, dataleverantörer och analysspecialister. Strategin bör vara tillräckligt flexibel för att dra nytta av oväntade möjligheter, tillgodose innovativa lösningar och svara på plötsliga förändringar i affärslandskapet.

Vilken typ av partners som försäkringsgivare kommer att behöva för att lyckas i en öppen försäkringsmiljö beror till stor del på ekosystemen de har valt att ta itu med samt de roller de tänker utföra inom dessa ekosystem. Försäkringsgivare bör till exempel bestämma tidigt på resan för att öppna försäkring om de gör detta för att förbättra sina traditionella produkter med mervärdestjänster som rabatter och belöningar. Alternativt kan de se öppen försäkring som en möjlighet att utöka sin produktportfölj utöver försäkring eller till och med helt förändra sina affärer. Först när de har bestämt sina värdepropositioner bör försäkringsgivarna sedan välja de lämpligaste partnerna för deras öppna försäkringsverksamhet. Viktiga överväganden vid val av potentiella partner bör inkludera en bedömning av deras ekosystemprofiler, innovationsfunktioner, kundernas räckvidd, dataresurser, teknikplattformar och affärsstrategier. Förutom att leta efter nya öppna försäkringspartner, bör transportföretag också se till att de förblir attraktiva partnerskapskandidater. De bör ständigt utvärdera deras beredskap för sådana partnerskap och se till att de snabbt kan samarbeta med ytterligare företag för att ta till sig nya affärsmöjligheter. måste anamma öppna försäkringar. By opening their data resources to other organizations and sharing and consuming data and services from multiple sources, insurance providers will be able to adopt innovative value propositions and business models. They’ll secure new revenue streams, increase their engagement with customers, improve their operating efficiencies and gain greater agility. Furthermore, collaboration with a wide variety of ecosystem partners can propel insurers beyond their traditional markets. They’ll be able to reach far more consumers and provide them with an array of enticing data-rich products and experiences. Insurers that are slow to embrace open insurance are likely to fall behind their competitors and may struggle to retain their customers.

Read more about open insurance and ecosystem opportunities:

Tomorrow’s open insurance opportunities.

Open Banking.

TechVision 2020: We, the Post-Digital People.

Insurers: Go all-in on ecosystems.

This document may contain descriptive references to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.


Source link