Accenture – Tomorrow’s open insurance opportunities

Executive summary :

Tech savvy insurance customers are demanding ever more personalised services from their providers.

Connected ecosystems is the key to delivering open insurance 

What they really want is open insurance – effective, efficient, insurance services characterised by straight through processing that maintain their data security while resolving insurance claims almost painlessly.

Joined up systems

The key to the open insurance door is connected ecosystems. That’s when insurers and third parties (both within and beyond the insurance industry) leverage shared, permission-based access to (for example) customer claim data, using application programming interfaces (APIs).

Where relevant, customers authorise their service providers to make their data accessible, in return for which they expect better, more personalized services and experiences. Such ecosystems enable proactive customer service by means of straight-through processing that minimises the need for client intervention and action, while maximising convenience and maintaining data security.

Direction agreed, but obstacles remain

Most insurers already think that their long- term success depends on open insurance ecosystems, but many still need to fully embrace it to uncover its full benefits. Open insurance does not enjoy the same regulatory stimulation as open banking, which is part of the reason insurers are still in the exploratory phase. However, cultural and structural barriers like corporate and consumer data privacy concerns are also potential stumbling blocks, as are the practical technology capabilities and partnering ethos needed to implement an open insurance ecosystem.

Open insurance will transform insurers

Those with the strategic foresight, and technical wherewithal, to realise open insurance early in the game stand to benefit greatly from the ability to:

Open insurance is a game changer. It promises to disrupt the insurance market and fundamentally reinvent insurance offerings to create new revenue streams. Rising quickly to the challenge could be the difference between market leadership and stagnation.

Open insurance fosters new types of collaboration and will generate unprecedented depth of customer insights. This will form the foundation for insurers to move beyond their traditional boundaries and develop brand new value propositions.

It’s crucial to develop open insurance capabilities early to avoid drowning in disruptive flood of new revenue streams and precision customer engagement. Your market relevance depends on it.

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