Incumbent insurers and InsurTech startups are changing the rules of the insurance business with the powerful capabilities of cloud-based platform businesses. They are forging the path to the future of insurance with a cloud-based platform utilizing cloud, microservices, open APIs and API gateway, artificial intelligence and machine learning, and digital ecosystems that will keep them ahead of the trends and the changing competitive marketplace.
- Visionary leaders are leveraging customer, market and technology trends as a many-fold opportunity for insurance growth by reaching new or underserved markets, creating innovative new products and personalizing the customer experience by using new sources of data and offering compelling experiences.
- They are fueling the redefinition and value creation revolution for insurance, particularly with the rapid growth of cloud and a changing technology foundation, coupled with growing ecosystems that provide new data sources and innovative capabilities and services, all of which create a multiplier effect for growth. Every aspect of the insurance business is being redefined within the context of the future … not the past. And platforms are the future.
- Both startups and incumbents are creating new products and business models built on digital insurance platforms, helping them accelerate innovation, dynamically plug into ecosystem capabilities and deliver speed to market. They are also broadening their opportunities to penetrate existing and new markets through their ability to “plug and play” into other ecosystems, such as mobility, housing or transportation/logistics.
- Time is of the essence because the future of insurance is picking up speed. Insurers must proactively adjust to customer demands, needs and demographics, to the changing risk environment, to shifting market boundaries and to the accelerating advances and adoption of technology. Platforms, with their technology and ecosystems, offer a unique opportunity for the industry to reinforce its relevance to customers.