Platforms are a force multiplier of internal and external strengths Both personalities play a role in how individuals work within the realm of technology and today\u2019s fast-paced changing world.\u00a0\u00a0<\/strong><\/p>\n Introverts, for example, may utilize their strengths to work on problems and find solutions more self-reliantly and in the background. They may spend more time in thoughtful contemplation about how something is best accomplished. Their genius may find its way to fruition with the use of research, testing, analysis and application. An introvert\u2019s ideas may have a certain cohesion to them because they come from the same mind.<\/p>\n Extroverts, however, have no less genius to apply. They likely approach the same issues and problems with different methods and tools. They bring together diverse teams to consider the issue, split those teams into sub-teams, cultivate the best ideas from both and combine them. Extroverts may open their questions and ideas to the outside world and utilize subject matter experts instead of books. They may tap into outside groups with similar issues. An extrovert\u2019s solutions may look like an anthology of best ideas, applied in a way that is collaborative and customized to the need.<\/p>\n When it comes to insurance platforms, development of and participation in ecosystems signals a shift from an introverted, introspective type of insurance organization, to a more extroverted, open and \u201cbest of options\u201d type of organization. This shift, though it may not always be painless, is going to help insurers construct a future-ready foundation. There is resilience, flexibility and \u201cknowledge\u201d that comes with interdependent systems. Ecosystems promise to provide an exciting level of interdependency, but only for insurers who are preparing platforms to interact with them.<\/p>\n Majesco\u2019s recent thought leadership report, \u201cInsurance Platforms \u2014 A Burning Platform for Market Leadership in the Digital Era of Insurance<\/a>,\u201d discusses the power and potential of ecosystems in relation to insurers. Ecosystems encompass a wide sphere of influence within and between industries.\u00a0 Amazon, Apple and Google, for example, have expansive, interconnected ecosystems that primarily operate on the perimeter of the industry, but are increasingly connected to it through customers, channels, partners and others for collaboration or competition, or both. \u00a0Digital ecosystems related directly to insurer needs, capabilities and data use can provide a foundation and connection to other ecosystems (like Amazon, etc.) to create and extend insurer value to their customers.\u00a0Digital1st EcoExchangeTM<\/sup><\/a>\u00a0and\u00a0Majesco\u2019s Digital1st PlatformTM<\/sup><\/a>\u00a0are the new types of ecosystems and ecosystem-ready platforms.<\/p>\n Michael Davies,\u00a0Founder and Chairman of Endeavour Partners and Lecturer at MIT and London Business School, stated in an interview at the Shaping Modern Underwriting conference in London that, \u201c<\/strong>The lack of touchpoints between insurer and customer is something that’s well studied, and the industry has long been trying to make insurance more than a once-a-year engagement.\u201d He highlighted that new technologies in general, and digital ecosystems in particular, will bring about transformative change that will happen whether insurers avoid or embrace it.[i]<\/a><\/p>\n Davies noted both the threat and the potential of ecosystems. The threat is that some of the largest companies that utilize digital ecosystems don’t necessarily care about making money with insurance, rather they are simply willing to step into insurance in order to enhance their ecosystems services. In doing so, these players vastly increase their share of customer data \u2013 and this is the battleground, particularly with the “Big Tech\u201d players, a big threat which was identified in our\u00a0Strategic Priorities<\/a>\u00a0research (see Figure 1).<\/p>\n Figure 1: Insurers expect Amazon and Google, among other Tech Giants, to enter the insurance market<\/em><\/p>\n From a potential perspective, Davies notes that collaborating with these larger digital ecosystems has a significant upside. Digital ecosystems offer constant touchpoints with customers in simple ways by plugging into capabilities that enable cost-effective growth while bringing insurance coverage closer and more personalized to the customer. Davies asserts that this is critically important, because despite the growing global economy, the insurance protection gap is increasing. Ecosystems and embedding insurance within them would not only reverse that trend but could also lead to significant growth.<\/p>\n These larger ecosystems could be a threat, or they could be an opportunity. For example, if one considers just the voice-assist digital channels of Amazon Alexa and Google, and the volume of business they represent, most insurers would rather find themselves as cooperators and not competitors to these pipelines that are trying to \u201cown the channel into retail.\u201d[ii]<\/a>\u00a0 And then consider the growing digital InsurTech marketplaces like Bold Penguin, Coverwallet or others that provide reach to consumers, small businesses and agents\/brokers digitally.<\/p>\n On the flip side, there is a whole other world of ecosystem development specifically designed to connect insurers with digital capabilities and data sources that are becoming the fuel for insurance development. With the breadth and velocity of change in technologies, customer risk needs and engagement expectations, it is nearly impossible for any insurer to possess, nor afford the acquisition of, the resources and capabilities needed to keep up with the changes, let alone anticipate and stay ahead of them. A platform-based insurance business model that leverages platform technologies like Cloud, APIs, microservices, AI and machine learning, and digital ecosystems of diverse third-party partner services completely removes this barrier. Insurers can choose from a variety of vetted partner apps and plug into them via APIs, allowing them to quickly and easily create customized MVP products and services that they can, in turn, test with different market segments.<\/p>\n Another important benefit of the insurance platform is that it greatly enhances an insurer\u2019s ability to \u201cplay\u201d within other, broader ecosystems that are being built around lifestyle-based or business-specific opportunities. This creates tremendous potential for both penetrating existing markets and reaching or creating brand new markets.<\/p>\n Swiss Re\u2019s recent report,\u00a0Digital ecosystems: extending the boundaries of value creation in insurance<\/em>, noted that these ecosystems can be structured into broad clusters, such as \u201cHome & Stay\u201d and \u201cLifestyle\u201d on the B2C side, and \u201cBuild\/Produce\u201d and \u201cDeliver\u201d on the B2B side. Within these clusters, finer-grained domains can be defined, like \u201cMobility\u201d or \u201cTransport & Logistics.\u201d Insurance fits well as a risk-mitigation component in many of these ecosystem domains, such as mobility, healthcare and housing.[iii]<\/a><\/p>\n Insurers can plug into these ecosystems in different ways. Using mobility as an example, insurers could create one unified policy to cover whatever mode of transportation a customer chooses, instead of separate policies for each. In another example, an insurer could provide risk protection services as a component of an ecosystem that provides a one-stop-shop for all of the \u201cjobs\u201d a customer needs to get done across their mobility customer journey\u2026\u201ca single window of interaction that eliminates points of friction between the different participants of the ecosystem.\u201d[iv]<\/a><\/p>\n Today\u2019s and tomorrow\u2019s new business models must leverage a business platform and ecosystems that redefine the business model with an outside-in view and a focus on continuous customer engagement.<\/strong>\u00a0Therefore, creating and participating in ecosystems will be crucially important for insurers as they plan their paths to the Future of Insurance. For an in-depth look at ecosystems and their impact upon insurance platform development, be sure to download,\u00a0Insurance Platforms \u2014\u00a0A Burning Platform for Market Leadership in the Digital Era of Insurance<\/a>.<\/p>\n [i]<\/a>\u00a0Eckhart, Daniel, \u201cDigital Ecosystems and insurance: Insights from Michael Davies,\u201d Swiss Re Institute, July 2, 2019,\u00a0https:\/\/www.swissre.com\/institute\/research\/topics-and-risk-dialogues\/digital-and-technology\/digital-ecosystems-davies-interview.html<\/a><\/p>\n [ii]<\/a>\u00a0Esber, Dianne, Brian Goffman and Brian Gregg,\u00a0Discussions in Digital: What\u2019s a marketing ecosystem and what does it mean for marketers?<\/a>, McKinsey podcast, March 2018<\/p>\n![\"\"](\"https:\/\/sviaccelerator.com\/wp-content\/uploads\/2019\/12\/93560697_s.jpg\")
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\n<\/strong>Those who have known me for years, know that I was an introvert growing up until I was a junior in high school running for class president. Yes, that surprises people! I had lots of friends across different groups (we can call them different ecosystems), but I was a relatively introspective person. Becoming class president was a catalyst in my becoming an extrovert \u2013 which my colleagues and friends recognize me as today. Why do I bring that up?\u00a0 Because over my career I leverage my introvert strengths, my analytical side and my extrovert strengths, my network of colleagues, peers, and others to bring both perspectives to ideas, topics and challenges.<\/p>\nEcosystems<\/strong>\u00a0\u2014 Threatening or Thrilling?<\/strong><\/h2>\n
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<\/p>\nMarketing ecosystems \u2014\u00a0digital channels and pipelines of opportunity<\/strong><\/h2>\n
Insurance-focused ecosystem growth<\/strong><\/h2>\n
The growth of broader, lifestyle ecosystems or business-specific ecosystems<\/strong><\/h2>\n