Cloud computing offers insurers substantial benefits as they endeavor to adapt to changing market conditions and introduce new digital products and services.
Ecosystem partnerships offer insurers huge opportunities to strengthen their businesses and drive up profits during the next five years. By combining their operational expertise, technology resources and industry knowledge with strategic partners, insurance providers can capitalize on the digital disruption that is sweeping all sectors of business. They can increase their capacity to innovate, access new markets, reach additional customers and boost revenues.
Traditionally, treatments such as massage therapy, yoga classes, or even acupuncture, were rarely considered an important part of the wellness chain—and getting insurance providers or employers to pay for them as a preventative measure was difficult. In recent years, however, more understanding has emerged about the value of these types of wellness treatments, both in terms of injury prevention and claim avoidance.
Insurers are under increasing pressure to accelerate innovation to keep pace with new disruptive technologies and changing customer behavior.
Most executives seem to believe their companies are a match-maker’s dream. Ninety-five percent of the executives we surveyed described their organizations as attractive ecosystem partners. Thirty-two percent thought their organizations were extremely attractive. Only 4 percent described their companies as average.
Data is the lifeblood of insurance. But the enormous potential of this key resource is outstripping insurers’ current capabilities. It’s no longer just about prioritising data for management information (MI) and business intelligence (BI) applications. Of course, these remain vital functions. But it’s data’s role in machine learning that will increasingly define winners and losers in this industry – powering the prescriptive analytics that allows firms to pinpoint ‘next best actions’.
When we think about the vast amounts of patient health data, it tends to be in the abstract—a complex matrix of information that is difficult for a human to decipher in a short timeframe. It is simply too much information to consider. But with AI, there is an opportunity to combine several different sets of health data, from several different sources, then analyze them for trends or patterns that can drive improved return-to-health outcomes and help prevent claims.
Insurers were among the first companies to recognize the huge potential of platform businesses. They quickly saw the benefits of working with digital platform operators to extend their marketing reach and engage with new customers. Carriers and brokers were early users of Google’s AdWords platform, for example, and in the UK, automotive insurers soon signed up with emerging on-line aggregators.
Digital ecosystems offer insurers the opportunity to boost their profitability by driving up revenues, pushing into new markets and accelerating innovation, while also raising the quality of their engagement with customers.