Eco-Systems – Do Insurers Have A Choice Other Than To Get On Board?

Insurers worldwide are trying to keep pace with the acceleration in digital transformation. Incumbents are increasingly considering partnering with InsurTechs, and other service providers, to create a digital eco-system to supplement their digital initiatives.

Eco-systems provide a win-win opportunity by enabling new competitive insurance offerings and new market pathways. Traditional insurers gain access to up-to-date technical innovations, while InsurTechs & service providers get the required financial leverage to expand their operations. McKinsey estimates eco-systems will account for 30 percent of global revenues by 2025. here are four main types of digital eco-system partnerships, while more possibilities are on the horizon:

1.     Insurance analytics partnership

2.     Value add InsurTech solution partnership

3.     Niche data and technology partnership

4.     External data analytics partnership

The future of insurance stands to be profoundly affected by networks and environments as conventional market boundaries continue to be broken apart in this era of digital eco-systems.

Source: iireporter