| |AUGUST 20228CIOReviewIN MY OPINIONHOW INSURERS CAN LEAD DIGITAL ECOSYSTEMS AND BETTER MEET CUSTOMER NEEDS PLATFORMS SUCH AS MICROSOFT AZURE CAN HELP COMPANIES BECOME NETWORK ORCHESTRATORSWe've all heard how the world's biggest companies don't sell products but facilitate experiences. Digital technologies have given rise to disrupters that have changed how we travel, vacation and buy just about everything. These organizations can be described as network orchestrators and, according to the Harvard Business Review, they deliver the highest average multiplier (price to revenue ration) when compared to other types of business models. Their success is driven less by what they offer, but how they do so. These organizations create a network of interconnected, complimentary businesses where each shares responsibility for creating value for customers. They may sell products or services, but increasingly, they may build relationships, share advice, collaborate and deliver unique experiences. Their ability to offer hyper-personalized, convenient services that seamlessly integrate into our lives have redefined expectations and raised the bar for all industries. Now Insurers are feeling the pressure to change too, as customer preferences change fast. For example, a new EY report found that millennials are less inclined to maximize wealth (e.g., through investing in insurance), instead preferring to spend on experiences such as travel and recreation. Customers also want a more streamlined, efficient decision-making journey where everything they need and want is available in one place, through a single port of access. How can the insurance industry shift from the traditional financial protection and compensation model to a new paradigm that focuses intrinsically on the customer?Creating value through connectivityEntering this new territory requires Insurers to leverage a digital platform for connectivity. These platforms can enable insurers to redefine their role in the customer's life, and create the connected, seamless experience they demand. For example, a health insurer could become a full-service health care concierge for every stage of a customer's life. Wearables and medical monitoring devices allowing customers to track, control and share information such as weight, heart rate, blood sugar, exercise activity and much more. With customers' permission, Insurers can share this data within a connected health ecosystem ­ medical practitioners, the local gym and supermarket ­ for monitoring and proactive action. Collaboratively and in some instances, intuitively, the network works together to help the customer lead a healthier and safer life, from scheduling medical appointments and expediting treatment through to lifestyle support by recommending meal plans, promotions on health ingredients at the grocery store, or offering discounted gym membership. In this way, insurers can use greater insights into customers' lives to offer them more value ­ crafting unique and highly personalized products and services based on what the customer actually does, not just who they are. Companies that can translate this data into insights can boost efficiencies across their people, process, product and service, and ultimately deliver best-in-class customer experiences. But this competitive advantage can only be accomplished through a cloud-based and scalable platform that allows By Chris Henderson, Partner, Analytics Advisory, EY Asia-Pacific DataChris Henderson
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