The Digital Ecosystem A New Insurance Business Model

1. The Digital Ecosystem A New Insurance Business Model Southeast Asia has witnessed unprecedented changes in the insurance industry in 2019. The tremendous growth of digitization of insurance distribution has resonated in this region as ride-hailing app Grab and Chinese insurance giant Zhong An announced their joint venture to create the insurance marketplace of Southeast Asia. This signifies mammoth changes coming to the insurance industry in the near future. Insurers in digital ecosystems The exponential rising of technologies, such as robotics or the Internet of Things, and artificial intelligence, is opening up new opportunities for insurance distribution through digital platforms in innovate ways. Digital ecosystems are successfully gaining market share across Southeast Asia. It is said that by 2025, the Southeast Asian Internet market is going to hit $260 billion, from just $72 billion in 2018. Digital technologies are today a way of live. The biggest platforms are ecosystems and Google, Facebook, Apple, Amazon, and Alibaba are at the forefront of a pattern shift from product-centric to more effective customer- centric distribution models. In China, We Sure, the famous insurance arm of the Chinese multipurpose messaging, has partnered with over 20 insurers and they are said to have reached 20 million users on its first

2. anniversary. Didi Chuxing is also rolling out its own insurance services. The rise of digital ecosystems The biggest power in digital platforms is customer centricity. Their digital nature allows them accessibility to customers in spite of time and location. Agile technology and repetitive feedback loops allow for speedy and seamless adaptation to the latest trends By leveraging customer data, they are able to successfully tailor their offerings to their customers’ exact requirements.

3. Once a customer buys from one platform provider it reduces friction and makes it easy to make a next purchase on the same platform. This creates trust and it becomes convenient to buy related services from the same platform. It is important for insurers to be part of this ecosystem in order to benefit from this consumer trend. However current processes and policies do not allow integrations fast. Partnerships critical for insurers The insurance industry has already seen many partnerships between established insurers and insurtech startups. As ecosystems rise in popularity across Southeast Asia, insurers must pursue fruitful alliances to keep up. To find out more about how we can help your organization’s digital transformationplease visit our website https://ancileo.com/ and email us at contact@ancileo.com.