Other parts of this series:
From personal transport and leisure travel to healthcare and retail, platform-based companies are reshaping traditional industries, breaking apart old value chains and reassembling them into customer-focused digital ecosystems. The question that every insurance carrier must answer is where it will fit into these emerging ecosystems.
Over the course of this series of blog posts, I’ll look at how the ecosystem economy is changing the game for insurance. Players such as Uber and Airbnb are forming and orchestrating ecosystems that bring together products and companies from numerous sectors and that give customers access to living solutions for a range of everyday needs.
The new business models they are creating are forcing incumbents across industries to embrace the same way of thinking, and insurers aren’t exempt. To remain relevant as the world moves from digital value chain, products to platforms and from linear value chains to complex ecosystems, insurance carriers must seize the opportunity to begin to build a new digital value chain.
Platforms versus ecosystems
- Combine technical architecture, governance, and services to enable the rapid creation of applications
- Are built on open standards, facilitating easy sharing of data between companies, consumers and other parties
- Create value through the network effect and make it possible for ecosystems to form
- Are a constellation of products, organizations and people aggregated on a digital platform
- See players across industry clusters collaborate to build new products, services and customer experiences on digital platforms
- Typically bring goods and services together into a customer-centric lifestyle or commercial offering
- Sell outcomes, such as access to safe transport, rather than fragmented products, such as automobiles, service plans and insurance cover
Those that get it right will be able to access massive pools of new customers, embed their brands deeper into customers’ everyday lives and create powerful new experiences for consumers and commercial customers. Those that don’t, risk finding themselves excluded from the ecosystems that will own the customer relationships of the future.
In my next post, I’ll look at how platform-based companies are changing customer experience expectations in insurance.