The 2018 McKinsey Digital Insurance Compendium synthesizes highlights from the past year that demonstrate the progress that has been made in reinventing the insurance landscape with a suggestion that more disruption is on its way. The discussion extends to two core areas: reinventing the core of insurance and pushing our thinking on disruption and on what the future holds for the industry.
The core of insurance is reinvented through making digital and analytics a reality with insurance through integrating technologies into the business. Three elements that the report predicts to have a significant and interrelated role with one another are Ecosystems, the Internet of Things (IOT), and artificial intelligence (AI).
An Ecosystem is defined by the article summarizing the report to be “an interconnected set of services that allows users to fulfill a variety of needs in one integrated experience.” There are consumer ecosystems, which tend to concentrate on needs such as travel, healthcare, and housing, and B2B ecosystems that generally revolve around a certain decision maker. According to McKinsey, Ecosystems will account for 30% of global revenues by 2025.
Read the full report here.
30 Dec 2018