In an ecosystem model, where does one organization end and another begin? And consequently, how do those boundaries affect its players’ responsibility to maintain digital trust?

Ecosystems provide carriers with a way to extend the insurance value chain, grow their customer base and offer a more relevant customer experience. New technologies like insurtech, APIs and blockchain can enable insurers to provide a broader range of services. New and novel data sources can also help them provide more personalized service.

However, from a digital trust standpoint, ecosystems pose some challenges. It’s not enough for an insurer to integrate digital trust throughout its operations. Now, insurers must also vouch for partners within the ecosystem. This is especially challenging for three reasons.

  • There typically aren’t clear boundaries regarding where one organization’s data responsibility begins and ends.
  • Presently, there are no standards or protocols for transparency, security, traceability or data sharing.
  • Many companies view digital trust as an IT concern, rather than a cultural or enterprise-wide initiative.

Importantly, if customers distrust one organization within an ecosystem, they distrust all of them. As insurers conduct due diligence in selecting partners, digital trust—both data security and data ethics—must be part of the criteria.

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