In the past couple of years digital ecosystems have evolved from being a potential trend to a mainstream tool. For any business in any industry, being able to increase market share and take advantage of all opportunities as they arise is going to mean being able to integrate greater digital technology and ecosystems that allow for more flexibility and choice, especially when it comes to giving customers what they want. These are some of the ways in which investing in digital ecosystems presents an opportunity for insurance businesses.
Providing a frictionless customer experience
An effective digital ecosystem increases the number of touchpoints available to insurers to interact with customers and to deliver extra value and services. Being able to optimise the customer experience not only helps to make a business more competitive but to improve brand reputation too - and digital tools are a key part of that. For example, integrating campaign management can provide opportunities for bulk contact and following up with specific groups.
Truly embracing the advantages of data
Data analysis presents many opportunities for insurance businesses, from more intelligent claim handling through to being able to focus on individual risk profiles.The enormous increase in the data being generated over the past decade makes this something any organisation can access - with an effective digital ecosystem in place. Integrating the latest tech provides vital opportunities for insurance enterprises to better analyse and scale data sets. The right ecosystem will enable ongoing evolution with the continuous integration of new developments, such as IoT devices, to help insurers refine available data and how it can be used.
A more innovative, agile - and reliable - approach
Innovation and agility don’t need to come at the expense of reliability where there is a robust digital ecosystem in place. With this approach, new ideas, tools and systems can be easily integrated and supported, reducing budgets and improving the quality of engagement with customers. Modularity is much easier to achieve, which makes it simpler to be flexible and make specific changes, and when it comes to scaling this is far quicker and easier.
Developing new revenue streams
Customer expectations about service are increasing for every industry, including insurance. With greater availability of data and the opportunity to create more interactions there is also the potential to design new products and services that better serve the needs of customers, as these become clearer. There are so many ways in which insurers can use a digital ecosystem to add value for the customer, strengthen existing relationships in the process, and also creating new revenue streams that help the business to evolve. One of the most obvious of these is when it comes to the prevention of risk, for example using telematic devices in the context of driving and car insurance or IoT systems being applied to highlight unusual behaviour.
Investing in digital ecosystems presents a whole range of different opportunities for insurance businesses, from strengthening customer engagement to creating new revenue streams.