For insurers, shifting from an industry to an ecosystem perspective requires a significant change in how they define their role in the economy. Currently, insurers act primarily as risk aggregators. They have a passive and limited relationship with customers, which increases their exposure to disintermediation, disaggregation, commoditization, and invisibility. If insurers were to lose their distribution and customer relationships, they would be left with few options to reinvent their business models. Adopting an ecosystem perspective—re-evaluating the traditional business model and considering partnerships with players both within and outside the industry—could reinvigorate insurers’ digital strategies.
In today’s digital age, many consumers prefer to purchase insurance and manage their coverage online, and very few insurers have responded by developing online platforms and mobile apps to meet this demand.
One of the main benefits of insurers in digital ecosystems is convenience. Consumers can shop for and purchase insurance coverage from the comfort of their own homes, and they can manage their policies and make claims through their smartphone or computer. This can be particularly appealing for busy individuals who may not have the time or inclination to visit a physical insurance office or broker.
Insurers in digital ecosystems also often offer a wider range of products and services than traditional insurers. This can include coverage for emerging risks such as cyber attacks or the sharing economy, as well as personalized coverage options that are tailored to an individual’s specific needs.
In addition to convenience and a wider range of products, insurers in digital ecosystems can also offer more transparent pricing and coverage options. Many online platforms provide real-time quotes and allow consumers to compare different coverage options side by side, which can help them make more informed decisions about their insurance coverage.
Drawbacks to insurers in digital ecosystems
There are several potential drawbacks to insurers in digital ecosystems. Some of the main drawbacks include:
- Lack of personal interaction: Some consumers may prefer to work with an insurance broker or agent in person, rather than purchasing coverage online. This can be particularly important for individuals who have complex insurance needs or who want more guidance in selecting coverage options.
- Complexity of coverage: Some consumers may not fully understand the terms and conditions of their coverage when purchasing insurance online. It is important for consumers to carefully read and understand their insurance policies to ensure that they have the coverage they need.
- Financial stability: Some insurers in digital ecosystems may not have the same level of financial stability as traditional insurers. It is important for consumers to do their due diligence and research the financial strength of an insurer before purchasing a policy.
- Limited options: While many insurers in digital ecosystems offer a wide range of coverage options, this may not be the case for all insurers. Consumers may find that their options are more limited when purchasing insurance online, particularly if they have specific coverage needs.
- Difficulties with claims: In some cases, consumers may have difficulty making claims or getting their claims processed through an online platform. This can be particularly frustrating if an individual needs to file a claim in a timely manner.
How Kakbima is helping insurers navigate digital ecosystem drawbacks
One way that Kakbima is helping insurers in digital ecosystems is by providing new and innovative products and services that improve the daily operations of the business. Our core focus has been emerging risks and new technologies that allow insurance companies offer coverage options that traditional insurers may not. The Kakbima insurance management and distribution platform provides a wide range of features spanning from customer management to claims management thus helping insurers in digital ecosystems stay competitive and offer a wider range of products to their customers through mobile and web.
Kakbima also helps insurers in digital ecosystems by providing efficient and cost-effective solutions for managing and underwriting risks. We provide the use of advanced analytics and artificial intelligence to underwrite risks more accurately and efficiently, which can help insurers in digital ecosystems reduce costs and improve their bottom line.
We also help insurers in digital ecosystems by providing a more seamless and convenient customer experience. We’ve focused on providing customers with easy-to-use digital platforms and mobile apps for purchasing and managing insurance coverage. This helps insurers in digital ecosystems attract and retain customers by providing a convenient and user-friendly experience. Overall, insurtech startups can help insurers in digital ecosystems by providing innovative products and services, efficient risk management solutions, and a seamless customer experience. By partnering with or collaborating with insurtech startups, insurers in digital ecosystems can stay competitive and offer a wider range of products and services to their customers.
