The Insurance Industry is opening its doors to new forms of insurance. In this new scenario, the concept of “Open Insurance” is generating a world-wide project that draws on the experience of the Open Banking initiative.
Open databases allow insurance providers to share with each other, what information they have available about the insured. The outcome are tailored policies for each insured, less time spent on data collection, and lower overall premiums as a result.
Let´s go over this disruptive strategy and the benefits of implementing them in your Company.
Open Insurance: disruption in the industry
Technology is changing the insurance industry. Because of this change, competitors are being forced to improve their game to get closer to creating a policy more “perfect” than that of other insurers. In this scenario, Insurance Carriers are turning to digital ecosystems to approach customers’ needs in a more flexible and tailored way. Open Insurance is the perfect example of a digital solution working to generate a massive ecosystem of “open” data. In other words, Open insurance offers a new type of insurance that dwells on how massive and varied an ecosystem can be.
What does Open Insurance means for the consumer?
Open Insurance is the new way of doing business that enables insurers to increase team efficiencies and revenue by reaching out to more consumers. It allows carriers to open their databases to other organizations and share and consume information from various sources across industries.
The outcome creates new value propositions, generates fresh revenue streams, and improves relationships with customers.
This is possible thank to APIs (Application Programming Interface) technology. Application Programming Interface appears as the ultimate solution to exchange data between different insurers, startups, banks, InsurTechs and other organizations.
With API technology, Open Insurance is possible and insurers can also obtain a deeper view of risk, making them able to generate tailored proposals for each individual policyholder, collaborate and leverage innovative solutions and business models.
What are the Main Benefits?
As we have seen, Open Insurance offers carriers the opportunity to enhance products and services, have happier clients, and increase customer retention offering a unique competitive advantage.
To sum up some of the greatest benefits, we can mention:
- Innovative customer propositions: Carriers can capitalize on the data from open insurance to launch a host of new customer offerings.
- Improve customer experience: Replaces manual estimates and processing that can lean on errors and allows customers to benefit from quicker outcomes tailored to their specific needs.
- New partnership and distribution models: Open insurance enables to extend distribution footprints beyond traditional markets by securing alliances with new business partners. As an insurance professional, you can integrate your products with the non-insurance offerings of your business partners to deliver a broader and more enticing seamless customer experience.
In conclusion, Open insurance is part of a very personalized future for the insurance industry. Time will tell if technology is able to provide the answer that consumers are looking for. What can be said with certainty for the time being is that Open Insurance has not disappointed.
