Just as the industrial era changed every aspect of life, the digital economy era will bring tremendous change to the insurance industry. Michael Costonis explains.

With the rise of the Internet of Things and the wealth of data it could potentially produce about the lives and assets of the insured, carriers need to consider where they might face new competition so that they can take a defensive position.

Platform-based ecosystems can provide insurers access to the data and customer interaction points that will enable them to offer personalized, real-time outcomes—including offerings beyond insurance—on a massive scale. But to take advantage of these new ecosystems, insurers will need to improve their capabilities in areas such as big data, analytics, service design, personalization and the customer experience.

Watch this Insurance Insight of the Week video to learn how platform business models will bring a profound disruptive change to insurance.

The platform economy is transforming every dimension of life—and the insurance business

Whether the insurer “owns” a platform ecosystem or is plugging into another company’s, what matters is having a platform strategy and the business know-how to exploit it. Progress will start from a clear understanding of those parts of the business that are prime for platform business models, and those that are most vulnerable to unforeseen attacks from other platforms.

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