Insurers across the globe are looking for ways to apply the use of data, products and services to enhance value creation in digital ecosystems. Although several front-running insurers are already making inroads with this, most insurers are lagging behind banks. That is one of the key findings from the INNOPAY Open Insurance Monitor. This instrument, which is based on the methodology of INNOPAY’s world-leading Open Banking Monitor, keeps track of the development of the global Open Insurance landscape.
Open Insurance is about sharing and consuming vast and ever-growing volumes of structured data, products and services in digital ecosystems. Open Insurance is thus an important building block for insurers to maintain future relevance for their customers and the creation of new business models.
The INNOPAY Open Insurance Monitor (OIM) continuously measures and benchmarks the functional scope of the APIs – which are needed for third parties to access insurance data, products and services – and the developer experience offered by service providers in the insurance landscape. These insights help insurers to identify relevant opportunities and kick-start their own Open Insurance journey.
Insurers are lagging behind
One key insight from the OIM is that while several front-running insurers are making good progress in developing a rich API portfolio, there is a lack of focus on the developer experience. In this context they are facing competition from banks, which are already able to offer a more advanced developer experience due to their Open Banking efforts and investments. Extending their API portfolios with insurance services would further boost the banks’ bancassurance models. Moreover, based on benchmarking against INNOPAY’s Open Banking Monitor, the OIM reveals that many insurers still have a long way to go in terms of opening up access to their insurance-related data, products and services.
“Open Insurance is rapidly taking off and holds the key for insurers to safeguard their business continuity and future relevance,” says Maarten Bakker, partner at INNOPAY. “Therefore, it’s time for insurers to really start thinking about their strategies to open up their business, develop the necessary capabilities and create digital ecosystems.”
INNOPAY has extensive experience in digital transactions and Open Banking.
Click here for more details about the initial insights from the Open Insurance Monitor.