Other parts of this series:
Together with ecosystem partners, carriers can drive more sales, deliver better customer experiences and even provide everyday coaching and information that help customers to stay safe and better protect their assets. We see five steps to success:
- Evaluate how your customers’ needs are met today over the lifecycle of events (e.g. birth, buy a car, start a new job) and how that will change by 2022. Remember that life events such as buying a car or a home, or giving birth to a child, create a risk management and insurance need. If you’re on an auto-trading platform or a healthcare platform, you’ll have access to data that will help you capture customers.
- Determine how your insurance products and services should be clustered with other products and services for a complete living service that answers the customer’s needs. Could home and life cover form a valuable offering on a platform for wedding planners, for example?
- Build a partner and platform strategy to get collaboration going with the right partners. Understand the roles, capabilities and strategies of each partner and build barriers to entry for competitors.
- Develop business models based on your vision, strategic orientation, investment focus and operating model. These models should be based on highly efficient insurance platforms, easy-to-use interfaces with other players (APIs), and superior analytics capabilities that enable you to understand risk as well as match demand and supply. Define the key performance indicators, skills and governance that will underpin your target concepts.
- Develop a roadmap for rollout and create investment business cases for the business models. You could adopt a portfolio approach to spread risk—testing different concepts (such as developing your own platform and joining select others as a partner) and collaborating with different partners.
Every insurer needs an ecosystem strategy to move forward, one that prepares it for a future where it is not involved in just a single ecosystem, but many. How it selects and fosters the right ecosystems for its business goals will define prospects for the future: competitive advantage depends on the strength of the partners and ecosystems it chooses and its plans to help them grow.