What is open insurance?
Open insurance enables information sharing within the insurance industry. It creates more digital and open relationships between insurance companies and their customers — relationships based on trust, understanding, and an enormous amount of data. It helps understand the needs of everyone involved, and will benefit both insurance providers and consumers. The win for providers is better insights about their insurance products, and the win for consumers is more enjoyable insurance experiences – it’s a win-win.
What we talk about when we talk about open insurance.
The PSD2 directive and open data transformed the entire financial industry, with open banking simplifying and streamlining processes and experiences, making consumers used to certain digital standards. What happened back then with open banking is now happening with open insurance. When you’re ready, we’re here to help.
Open insurance is based on APIs, Application Programming Interfaces, which are sets of programming codes that allow for data transmission from one software product to another. APIs (such as the ones used in open banking) enable insurance companies to open their data sources and collect data from their consumers, competitors, and third parties.
In addition to already strictly following all GDPR and other data protection standards, clarifications on an open insurance framework are needed. Under an open insurance regulation, insurers would be legally required to develop standardized ways of sharing personal and non-personal insurance information with third parties - creating security for all parties involved.
Read more about our view on an open insurance framework in our responses to the European Commission’s consultation on "Open Finance framework and data sharing in the financial sector".
How does it work?
Digital authentication allows consumers to share insurance data safely for better experiences, such as seeing their information within an app or having a phone sales representative access the data as a basis for better insurance recommendations. This leads to more well-informed decisions by the consumers, and more efficient sales processes by the insurers – a win-win.
Read our FAQ to learn more about open insurance.FAQ
Create win-win experiences.
Open insurance equals informed decisions at every step of the insurance journey, as well as frictionless switching and management features. Consumers can seamlessly share their current insurance information, get a transparent comparison to an alternative policy, and buy a new policy, all digitally after collecting all insurance policies in one digital overview.
Open insurance will lead to similar benefits to those that banks have seen from open banking: more streamlined products and consumer offers, tailored solutions for every customer, improved customer relationships, and increased innovation stemming from insights into what competitors are doing.
Open insurance enables a holistic banking experience. With opportunities for new digital bancassurance products and the inclusion of insurance in personal finance offerings, banks can take a larger share of their customers’ financial ecosystem and deliver new engaging features to their customers – while increasing value for the bank.