How ecosystems can benefit insurers
Ecosystems provide direct access to better technology, an attractive benefit for insurers challenged to modernize core technology in a cost-effective way. Via APIs that connect ecosystem partners, insurers can share data seamlessly and securely, including critical data that has been long locked up in siloed systems. That’s an important consideration as open insurance increasingly becomes the standard across European markets. These connections enable traditionally slow-moving insurers to become more agile and adaptive in keeping up with fast-moving markets (and even faster-moving competitors). Carriers can also use ecosystems to engage Insurtech's offering advanced tools for pricing, robo-advice, claims processing and other key functions. With more InsurTechs competing directly with insurers, ecosystems can provide an alternative to costly acquisitions. EY research indicates that European insurance executives are already thinking along these lines.
