In the business world, it’s common to focus on competition. Companies need to keep up with their competitors, and many actions are designed to strengthen their competitive edge. More importantly partnerships and collaborations can provide you a faster way to keep you on the cutting edge.
A single company cannot do everything, so frictionless partnerships are needed. When two organizations combine forces, and these partnerships go a step further to work in harmony to the benefit of all parties – including the companies and their clients – we have what is sometimes called an ecosystem. In this model, services are integrated, and outcomes are accelerated – increasing interconnectivity and facilitating a seamless experience for the consumer.
For the insurance industry, ecosystems open the door to a new – and better – way of doing things.
Digitization, Platforms and the Current Transformation
The insurance industry is currently undergoing a technology-fueled transformation. There’s more data than ever before, and insurers are having to embrace new tools, including artificial intelligence and machine learning, to make use of it properly.
According to McKinsey & Company, by 2025, ecosystems will account for 30% of global revenue. As this change takes hold, some companies will prosper while others will flounder – and insurance companies will not be immune to the changes. Insurers can function both as a risk-mitigation service for other ecosystems, as well forming their own ecosystems. However, adopting an ecosystem-based approach will require some flexibility and open-mindedness. Insurers will have to reassess their relationships with consumers and develop strong partnerships with other providers.
Disruption Is Inevitable
According to Accenture, insurance is currently experiencing a moderate level of disruption, and it is susceptible to more disruption in the future. Ecosystems are part of the disruption that modern industries are facing, and insurance companies can either embrace the opportunity – or become a victim of it.
At the same time, consumer expectations are changing. People have become accustomed to going online and finding everything they need in one place. They expect a fast, convenient, seamless experience – something that the ecosystem model can deliver.
The Benefits of Strong Ecosystems
True transformation is always difficult, but the ecosystem model provides numerous benefits that make this avenue worthwhile for organizations in the insurance industry. Ecosystems, at a minimum can …
- Remove friction for the carrier
- Enhance productivity and speed up product development
- Open the door to new markets and potential
When you work with Insuresoft, you get more than a powerful core system. You also have access to our full ecosystem, which includes technology integrations, business process outsourcing services and prebuilt accelerators to get you to market fast.
Our goal is to give you the tools and expertise to launch your products to market quickly and compete effectively in a hypercompetitive, hyper-connected world. Request a demo to learn more.