Merriam-Webster Dictionary defines ecosystems as something, such as a network of businesses, considered to resemble an ecological ecosystem especially because of its complex interdependent parts. Insurtech Insights predicts that one of the biggest words of the year will be ecosystems. Ecosystems should produce key changes in two areas: how we touch customers and how we organize internal processes.
How we reach customers has moved mainly online. With the pandemic stopping almost all in-person activities, we’ve had to adapt to online resources. This has given the insurance technology industry the ability to reach its consumers more effectively and efficiently. Rather than waiting for the customer to come to the insurer, customers can now meet us in their moment of need through the digital sphere.
Digitization also allows for bundling home insurance with the purchase of a home for example. The process is more efficient online and the customer likely doesn’t have to fill out any more forms thanks to auto-fill. Insurtech Insights mentions how it’s inevitable that digitization will push the initial contact with customers well beyond the walls of individual insurers and their agents, and will require building an ecosystem.
Organizing Internal Processes
Additionally, how we organize internal processes can improve dramatically by rethinking the major parts of a business. Rather than thinking of big insurers as closed systems — like they typically have been — think of an organization as an open ecosystem. In this scenario, the organization doesn’t have to manually do everything itself. It could program software to incorporate a streamline of innovations. An example would be how an app works on your phone. The team originally wrote some of the pieces but the software takes care of the rest.
Once you specify an application programming interface (API), you can improve on it and upgrade certain features. If this were in terms of a business, you would be able to connect instantly with other companies through this API to sell your services. Or in turn, you would be able to purchase other companies’ services as well. Once all parties agree on the initial coordination such as how the details on a crash and on how insurance coverage will be posted, then the process becomes an ecosystem.
Insurtech Insights states that “any piece of the API can be swapped out if a better option comes along, with no disruption to the other pieces, creating the opportunity for what is called a “flywheel” of innovation.” Everyone in this ecosystem would be able to communicate quickly and effectively.
Disrupting the Insurance Industry
Moving toward online platforms can increase the communication and overall efficiency of how a business functions. Insurtechs disrupt the insurance industry with their efficient use of technology as a tool to more accurately process claims as well as communicate easily. Hailios has made processing hail claims easier than ever before. Our hail sensor technology can determine the kinetic energy and diameter of every piece of hail.
Being the only IoT and data analytics company with a fully-transparent, property-level data solution, we were selected by Property Casualty 360 for 11 InsurTechs to watch in 2021. Also, we’re proud to announce that we were recently selected by Oxbow Partners as one of the InsurTech Impact 25 for 2021. If you’re looking for fast and accurate hail claim processing, look no further. Visit Hailios today.