In response to the growing trend of digitalization, a significant majority of insurance companies are choosing to create their own digital platforms. A recent survey conducted by the Geneva Association reveals that 80% of major re/insurers have formed corporate partnerships with technology firms to co-develop these platforms.
The survey, which included 21 major re/insurers accounting for over $550 billion in premiums, highlights a notable trend: more than 60% of insurers are focused on developing proprietary platforms to retain control over their digital ecosystems.
Concerns regarding data security and privacy were prominent, with 50% of respondents identifying these issues as significant. Additionally, 33% cited challenges related to regulatory compliance, particularly in areas such as data usage and geolocation. The survey also found that over 85% of insurers faced difficulties in integrating new platforms with their existing IT systems.
A digital insurance platform ecosystem encompasses a variety of components, including digital interfaces like mobile apps and websites, a multi-supplier environment that aggregates products and services—such as healthcare or travel—and the transactions that take place between insurers and platform participants.
This ecosystem serves multiple roles, acting as a matchmaker, administrator, regulator, and innovator, effectively linking customers with insurers and streamlining the insurance process.
Insurers can engage with digital platform ecosystems in three distinct ways: as orchestrators, by constructing their own platforms; as partners, by joining existing third-party platforms; or as co-developers, by collaborating with third parties to create a new platform.
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