More consumers are asking for life insurance today than at any time in decades. according to a limra studyThere are 60 million uninsured and underinsured households in the United States, representing a $12 trillion coverage gap and a huge opportunity for the industry. But if insurers want to reach this under-served market, they need to step up their game by providing personalized products offered to consumers through convenient digital channels.
But not all insurers are equipped for the challenge and many must make a choice. Some will choose to build on the digital capabilities that today’s consumers expect, such as video onboardingself-service portal, and automated, AI-Powered Underwriting and claims. Others will choose to tap into the developing ecosystem, where insurers can choose from a virtual list of providers to meet their digital needs, almost like visiting an app store. However, insurers who choose to join an ecosystem will need to modernize their core insurance systems for new business, underwriting and policy administration – and it must all run in the cloud.
Insurance Ecosystem of the Future: Multiparty Systems
An entirely new data infrastructure will be needed for a coordinated, strategic ecosystem to flourish, and that is where multiparty systems come in. as we told Accenture’s Technology Vision 2021Multiparty systems use a variety of technologies to record and share data between individuals and organizations, achieving new levels of speed, privacy and security. For insurers, multiparty systems can drive new efficiencies and enable the development of new business and revenue models. In the health care industry, for example, one study found that investing in industry data interoperability could save $30 billion in administrative costs..
We see equal opportunities for the insurance industry in open forums and standardized APIs. With a digital ecosystem and seamless connectivity, insurers can break free from the limitations of traditional industry to explore new capabilities and new markets. We are seeing this in the digital health market where insurers are collaborating health and Wellness To help providers help consumers improve their health and provide financial security for themselves and their families. This, in turn, can reduce their risk while buying a life policy and encourage them to remain healthy and engaged throughout the policy lifecycle.
Providing value in the insurance industry
Insurers, policyholders and industry all benefit from efficient interconnected systems that can reduce costs and add value by providing products and services that help solve consumers’ problems. Technology plays an important role. Ecosystem change is a top priority for insurers in 2021, according to analyst firm Celant, and they expect insurers to increase spending on technologies related to customer experience.. The insurance ecosystem places great value in operational efficiencies for both the front office, customer experience innovation and back office. And the ecosystem continues to expand as new insurtechs enter the market.
Companies with a strong digital presence were able to move rapidly during the pandemic. The lesson for every business leader was that technology-based ecosystems are the foundation of future growth and leadership, and insurers cannot step up their game if they don’t have the right tools. Investing in a platform that starts a new partnership is the most immediate action for enterprises – but it is only the first step.
Let’s talk today about how we can prepare you for the future.
 SOURCES: Huynh, K., & Dzebic, N. [2020, August 25]. Voices of the Industry – Interoperability can cut health costs by $30B. But this needs to happen first. Fierce Healthcare: https://www.fiercehealthcare.com/tech/industry-voices-interoperability-can-reduce-healthcare-costsby-30b-here-s-how )
 Source: Top technology priorities for life insurers in 2021, Celent
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