Open Insurance – into the fast lane with open interfaces

[suchona.kani.z]

The topic of open interfaces has become established in the banking sector since the EU Payment Services Directive PSD2 came into force. Compared to the banking world, the insurance sector still has a lot of catching up to do here. How can an insurance company use open insurance to further develop its own business model and strengthen its competitiveness and future relevance? What opportunities and risks does open insurance hold for the insurance industry?

What exactly is Open Insurance?
While there are already generally accepted definitions for many terms from the world of finance, the term "open insurance" is not yet clearly defined. In fact, the term for this topic area has developed into a real buzzword.

As head of the Topic Group Open Insurance within the InsurLab Germany e. V., I have created a common understanding of the term together with the participants:

Open Insurance describes the standardized communication between lithuania consumer email list data providers and third parties. Through the open and standardized exchange of insurance-related personal and non-personal data using APIs and process standards, Open Insurance promotes new innovative use cases and business models beyond the insurance industry. The focus of Open Insurance is on users who, in the spirit of data sovereignty, decide how and to what extent data is made available to third parties.

Open Insurance therefore consists of three central aspects – customer centricity , openness and standardization .

Actors in the Context of Open Insurance
Users: Individuals who consent to the use of their own insurance-related personal and non-personal data and in return benefit from an innovative business model or use case.

Data providers: primary insurers or reinsurers who use an open interface to make user data accessible to third parties. This data can be received in processed form via the same route.

Third-party providers: Third-party providers process the data provided by users via data providers. These are fintechs or insurtechs. But primary insurers and reinsurers can also act as third-party providers. Third-party providers provide users with innovative services.

Use cases of Open Insurance
The exchange of insurance data between different stakeholders is now complex or even not possible at all.