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A survey among the Insurance leaders across the world would reveal- those who have adapted to the ecosystem and have developed the necessary capability to scale are the ones who are ahead of the game. Infact, the research also says insurance ecosystems will account for over 30% of global revenues by 2025.
All this goes to show how powerful the ecosystem is. If you have been following our blogs, we have written about the entire insurance ecosystem [link to earlier post] and how it has evolved over the years. In this one, we shall talk about the various risk elements involved and how it impacts the insurer and insurance business.
When insurance businesses and insurers are looking ahead into the future, some of the questions arising would be around new or emerging risk opportunities. Where are the new risks? How can they gain an edge over competition to help their customers who are affected by those risks? While we, at Neutrinos may not have all the answers to these questions, we are aware of them and are working towards creating solutions to help insurers win these challenges, and boost business growth.
Role of risk & analytics
Insurers of the current digital era have adapted to changes and carry strong analytics capabilities when compared to their peers from other industries. With the help of automation and analytic, the digital ecosystem offers insurers new opportunities to gain information, insights and use the same to assess risk better. For example, insurers are considering the various minor details related to the connected home, or automobile solutions. Having a good understanding of how the market is evolving, at Neutrinos, we have crafted solutions that can eliminate redundant, duplicated and fragmented capabilities, encouraging reuse of developed capabilities. We also help upgrade the existing Legacy Systems and help transform the way a business operates with digital solutions.
With the help of predictive analytics, insurers can create risk profiles, thereby influencing the pricing of a policy. With the constant increase in volume of data, risk assessment and management will continue to demand increasing amounts of advanced analytics.[refer above image]
Partnerships will be critical
While the insurance ecosystems necessitate and enable a clear focus on risk prevention, it is important to forge partnerships that will change the face of business. Insurers need to look at companies that are Internet of Things (IoT) providers, giving them the ability to address all customer touch points thereby leading to better customer engagement and satisfaction. Similarly, insurers need to look for partners who will add value to services and this could be across tech, finance, or analytic start-ups.
Changing role of insurers
Insurers play multiple roles across the insurance ecosystem. For instance, the personal mobility ecosystem offers a set of opportunities that could expand into areas such as purchase and maintenance management [automobiles or homes], carpooling, ride sharing, traffic management, connectivity, and other aspects involved in this.
Since the insurers already possess a strong foundation in mobility [with their current customer base and personal data available], the next step would be to build necessary capabilities across areas and systems.
An executive survey by McKinsey & the World Economic Forum, 65% of the participants agreed to this statement- “The risk of cyber attack is a significant issue that could have major strategic implications over the next five years.”
It is therefore clear that insurers need to develop capabilities if they wish to survive, and come out as winners. Redefining business models, switching from traditional processes to automation, RPA, AI, ML capabilities, Gamification, connected wearables, analytical tools, and customer interface channels is where the journey begins. When working with a low code MXDP platform such as Neutrinos, the digital solutions is a good way to build on their capabilities (IOT, AI, ML and RPA] and working with direct to customer channels in the process.
Insurers have made good progress by adopting Telematics, but to fight competition, they need to constantly evolve and learn to leverage on available capabilities, and increase sales opportunities. It is imperative for insurers to make the shift from risk aggregation to risk prevention.
The shift in the market, the shift in focus from product to customer, the importance of the ecosystems does provide ample opportunities for some of the players to realign their business initiatives and priorities and gain an edge over others in the process. Neutrinos is a one stop platform and can integrate all digital solutions [IoT, automation, big data & data analytics, RPA, AI, ML and more] with omni channel capabilities as well for better results. This will help companies achieve digital customer experience like never before. Reach out to us for a demo session.