THE AGE OF THE ECOSYSTEM
INSURTECH
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innovation will require the nurturing of digital ecosystems that sees traditional insurers join forces with new , innovative insurtechs . driven by the increased use of digital technologies by consumers and the realignment of global markets into one , connected whole .
As an example , it notes that seven of the 10 largest companies in the world by market capitalisation operate within ecosystems , including Apple , Amazon , Alibaba , Microsoft and Facebook . Further , it explains that by 2025 , 12 distinctive ecosystems will emerge , accounting for $ 60trn in revenues , or close to 30 % of all global revenues .
According to McKinsey , there are three key values derived from being an ecosystem player :
THE AGE OF THE ECOSYSTEM
According to McKinsey , “ as traditional borders fall away , the future of insurance stands to be greatly influenced by platforms and ecosystems ”. The latter , it explains , is an interconnected set of services that allows users to fulfill a variety of needs in one integrated experience . McKinsey explains that digital ecosystems are already emerging in several sectors worldwide , such as healthcare and finance ,
1 . They can be gateways that reduce friction for customers wishing to switch between related services , to not toggle between different portals or log-in networks .
2 . They harness network effects .
3 . They integrate data across several different services , thus providing better and more personalised solutions to customers .
JULY 2020