Open Insurance: what it is and how it works

From the same creators of open banking comes Open Insurance, a new system for those interested in insurance and keeping an eye on this market.

Since the beginning of 2022, many people have been discussing Open Insurance, which according to ConJur is one of the market trends for this year. But what is this?

Find out what it is and why companies like B3 and Wiz, according to Money Times, are investing in this area.

This way you will be able to be informed about a subject that will make a difference in the future.

Image: Getty Images

What is Open Insurance?

In translation, Open Insurance means “open insurance system”, it is something new that will give companies the possibility to act within a completely integrated ecosystem.

It is a movement from the front called Open Finance, the same one that started Open Banking. And all of this has been happening as a result of a process of digital transformation that we are experiencing.

How it works?

Those most affected and benefited by this new system will be insurance companies.

Since the idea is to have an open system with information, services, products, features and much more, among all companies in this market.

But of course this will also positively affect policyholders. Insurance companies are expected to make their applications, services and products available to their customers in a single system.

But of course, the first part of the entire implementation process is getting consent to share information from your customers.

Remember the LGPD is in force and we cannot be careless with personal data to avoid being penalized!

What are your foundations?

The objective of this is to centralize demands and improve the user experience in the digital world.

Focusing on the experience part, nowadays this subject is extremely important for all businesses. Because the better the experience and more personalized, the better the customer feedback will be.

Open innovation also has a lot to do with the new digital business models that have been emerging, as it allows several insurance operators to work together.

Open Insurance Phases

Open Insurance is expected to be in force after just 3 phases.

In the first phase, which began in December 2021 and runs until June 2022, insurers are expected to create their service channels with available products.

In other words, they must gather the information that will be needed later on.

The second phase will last from September 2022 until June 2023.

Here you will need to authorize the sharing of your customers' personal data. She is essential.

Here we will also see the registration of customers in the database and their relationships with the products, always seeking the greatest possible personalization.

The third phase is expected to be put into practice from December 2022 and completed in 2023. Note that phases two and three occur at parallel times.

This third will be where the services will actually be put into practice, where the insured will have access to a complete system with all the information they need.

Be they forms for reporting claims, modifications to plans, portability and many others. In other words, everything will be simpler. The world will be in the palm of your hands and that's incredible.

Benefits of Open Insurance

And of course there are notable benefits that could not be missed when we talk about technology.

The first of these is the agility and precision that will be brought to services, along with the integration of services such as Open Banking and all the others in this new wave of open innovation.

Furthermore, an improvement in the customer experience will be noticed, as their journey will be personalized and specific to their needs.

Innovation is also another positive point, because with modernity, other points that surround us must also follow developments.

With Open Insurance, you will have an easier time searching for services and insurance that suits you. Everything will be very well centralized and marked in the palm of your hands.

We don't have anything implemented for now, but it's worth keeping an eye out to be one of the first to learn about this new model of adopting insurance.