Business Use Case
Insurance industry
- Digitization of processes
- Verified, digital customers
- Open ecosystems for more synergies
- New business models
- Consistent automation
Shaping new paths
The insurance industry is facing a transformation. Digitalization demands a rethink and the demand for digital processes, consistent automation and user-centric offerings is increasing. myEGO would like to help shape these new paths in order to accompany the insurance industry in its digital transformation.
What approaches do we present?
①
Opening of ecosystems
②
Insurance profile
③
Example: Driver profile data
1. Revolutionizing the insurance industry through open ecosystems
By sharing and reusing verified data, traditional closed ecosystems can be transformed into new and open ecosystems. With myEGO’s self-sovereign identity (SSI) solution, which puts people at the center of all business transactions, collaborations are now possible between companies that are normally unrelated or challenging to create. The formation of open ecosystems with a strong user-centric approach enables traditional companies, such as the insurance industry, to develop new ideas and models as well as collaborations that pave the way for value-creating synergies.
To play a relevant role in the ecosystem world, insurers need to take three steps. First, they need to define a clear strategy. They need to evaluate their strengths and assets vis-à-vis other industry players to decide whether they can find a meaningful role as an orchestrator. Or, they need to define which kinds of ecosystems they would like to participate in and what their specific contribution can be. Secondly, insurers need to define compelling use cases, which benefit the customer and the insurance company at the same time. […] Third, insurers need to take a leap of faith and start to get going.
Lorenz, Johannes-Tobias: “The rise of ecosystems and platforms: What role can insurers play and how can they get started?”, 25.7.2018, https://mck.co/39vrn0h
Digital identity as the engine of a new insurance industry
Our understanding is based on the idea of open, secure and user-centric ecosystems. This approach enables insurance companies not only to pursue more user-centric business models themselves in the future, but above all to create new synergies. As mentioned above, myEGO can ensure that they can become participants as well as orchestrators of these new ecosystems.
More information about the use case?
myEGO took a close look at the insurance industry and defined and summarized the problems and challenges as well as possible approaches to solving them. In particular, myEGO examined the possible synergies between the insurance and automotive industries. You can find more information on this topic in the document below.
In a digital world, winning companies meet exacting consumer needs—for tailored products, simplicity, and transparency, for example. Insurers traditionally have had little opportunity to understand such needs, interaction with customers being limited to buying a policy or making a claim, processes that might anyway be delegated to brokers and agents.
Higginson et. al. “The promise of blockchain”, 1.3.2017, https://mck.co/2KOe94n
2. Insurance profile
One mistake companies can make in digital transformation is to build products, services and new strategies around technologies instead of considering people, their needs and experiences. So true innovation and transformation of the insurance industry would also only work if it focuses on people and does not consider them as a secondary byproduct.
The open ecosystem approach and the focus on people (data can only be exchanged after consent) will enable insurance companies to create personalized offers in the future. Through the newly created synergies between industries, the end customer can now store various data sets in his secure “private space” with the help of myEGO and build up his own insurance profile. This can be information on the various insurance policies as well as risk peculiarities. The more users can interact with companies and collect and manage data themselves, the more information the user can share with an insurance company. With the consent of the end customer, insurance companies or insurance platforms could in turn monetize certain data sets – in this way, they will not only be participants but also leaders of the digital transformation in the future.
How might industry players in the evolving automotive ecosystem turn car-generated data into valuable products and services? […] Insurers are able to capitalize on car data by offering usage-based insurance contracts, exploring occasion-related policies (e.g., short-term, location-based motor insurance) and extending their understanding of customers’ behavior beyond the yearly contract signing touch point.
McKinsey & Company “Monetizing car data”, September 2016, https://bit.ly/3fVPlDd
3. Example: driver profile data
We have already highlighted the fact that new synergies between industries and companies are possible by opening up ecosystems. myEGO has taken a closer look at the example of car insurance and driver profile data. As already explained in more detail in the Automotive and Mobility use case, various data (industry and user data) is collected in the vehicle by car manufacturers and the like, which an end customer can manage and also share with other companies after giving their consent. For example, if the end customer wants to change his car insurance or take out a new one, he could send various data sets combined to the desired insurance company, such as vehicle data, verified personal data (KYC) or even financial data. In return, the end customer can receive personalized insurance quotes. With the customer’s consent, the insurance company can also monetize these with further industries through the data combinations received.
