Insurance in the Mobile Economy
The economy of today has changed with the convergence of mobile, cloud and social. Convergence of these technologies has sparked and given life to the idea of sharing and on-demand access, anytime and anywhere for a subscription. This is the era of consumer and enterprise mobility. Despite early expectations that current generation would grow up and grow into the same “buy” model consumption patterns as the generation before, there are clear differences that are emerging which point to the opposite.
Two data points to show the differences. Only 66 percent of Americans under the age of 35 own cars—that’s down from 73 percent in 2007. The average car owner’s vehicle sits idle for 22 hours per day. In the face of lower wages and high student debt, it’s not surprising that with convergence of technologies are allowing the current generation to share, rather than own.
Some are of the opinion that current generation will eventually buy cars and homes, just as their parents did. Only time will tell. In the interim, the sharing economy continues to grow—and savvy insurers have to take the opportunity to innovate and play a role in the sharing economy opposed to their leadership in a ownership economy. Property and General insurers have to change business processes have to fit the new share and on -demand model.
Consider some of the numbers associated with the sharing economy:
In 2014, the global market for shared goods and services was worth an estimated $3.5 billion.
In the United States, there are an estimated 80 million users who are sharing opposed to buying.
The top 100 Airbnb hosts have grossed $54 million over the past three years.
Avis paid $500 million to acquire car-sharing service Zipcar.
How to Energize the Insurance industry with Mobility at the core of Business Processes
In the sharing economy, access trumps ownership. That paradigm shift poses both opportunity and challenge for insurers. Innovative insurers will redefine risk and connect with a wider customer base—driving long-term growth and profitability.
The sharing economy brings people together through mobile, cloud and social to exchange or rent access to goods and services. Entrepreneurs are building this economy by leveraging emerging digital technologies on mobile and cloud to meet customer needs in new and disruptive ways. “Forbes” predicts that the global sharing economy will grow by 25 percent in 2014, reaching just over $3.5 billion.
The sharing economy is forcing insurers to rethink all aspects of their business including product design, and channel strategies. Establishing a leadership position in this space early in its development could be a source of significant, long-term competitive advantage. Leadership in this economy requires embrace of converging technologies such as mobile, cloud and social collaboration. Access over multiple channels to an always connected customer is important. It is even more important for property and insurance companies to provide insurance for that access through multiple different models.
This is where MoNimbus can be of assistance. Most insurers are well established and users of the web. However have been slow to move to cloud, mobile and social. However now they can move by using a cloud platform.
MoNimbus, a cloud based middleware can transform existing business applications to embrace mobile, cloud and social faster, better and cheaper. It can be appealing to an industry that has to catch up fast to this shared and on-demand economy. Further if the cloud platform can allow the users to change and modify for an unique optimized experience on any device at any time is further appealing.