How Ecosystem Affects Insurers

Published on August 06, 2018 | 1 min read

How can insurers create network effects and become market leaders?
From capturing data as a one-time event to investing in connected technologies and market intelligence, insurance companies are shifting direction.

INSEAD believes insurers will realize that the ownership of consumer data can give them a competitive advantage, but also that they cannot manage all value creation for their customers on their own.

This is especially true for insurers who focus more on risk assessment and claim management than product innovation. The opportunity lies in creating their own ecosystems with partners that can offer relevant value to the end consumers.

Network effects allow for scalability: the more data an insurance ecosystem can capture, the more third parties will want to collaborate with them. The more value these third parties offer, the stronger the value proposition will be for the customer.

One insurance company alone cannot be in charge of all value creation for their customers. Let’s create ecosystems that can.

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