Successful insurers will either offer insurance as embedded value add or insurance with added value

To navigate today’s dynamic environment, Insurers are shifting from “doing digital” to “being digital”. The insurance value chain is evolving its monolithic, siloed approach to data and CX to become a modular and specialized value chain featuring harmonized customer experience. The new insurance value chain will feature two primary scenarios: insurance embedded as a value add within third-party ecosystems, and insurance with added value at the core of complex offerings.

As the line between insurance industry participants blurs, two distinct scenarios will unfold

In the embedded insurance scenario, coverage is embedded at point of sale or point of service and is purchased when/where the customer demands – to become virtually invisible. The business model evolves toward a B2B2C proposition, where ecosystem partners control customer relationships.

With insurance at the core, insurers evolve from selling products to CAREing for customers through predict-and-prevent propositions enabled by AI and analytics and B2C engagement remains critical.

Two different scenarios are emerging for the future of insurance