Platforms and ecosystems: How insurance is being reimagined in Germany, Japan, the UK, the US and China

Global trends and lessons learned for the digital transformation of the insurance industry

Imagine you report a claim – and everything runs smoothly: digital claim reporting, immediate processing, real-time payment. No paperwork, no waiting on hold, no uncertainty. What is still considered innovative in Germany has long been reality in markets such as Japan, the United Kingdom, the United States and China. Platforms and digital ecosystems are fundamentally changing the insurance world – and offering enormous opportunities for customer centricity, efficiency and new business models. But how far have other markets really come? And what can we learn from them?

The challenge: insurers caught between customer expectations and digital transformation

The insurance industry faces similar challenges worldwide: customers expect digital services that work as smoothly as Amazon or Netflix. At the same time, new competitors, tech giants and InsurTechs are entering the market. Those who fail to move will quickly be left behind – this is just as true in Tokyo, London, New York and Shanghai as it is in Munich or Berlin.

Many insurers are struggling with outdated IT systems and rigid processes that leave little room for real innovation. Customers no longer want isolated insurance products, but comprehensive solutions that fit their life situations – digital, fast and uncomplicated.

A core problem is legacy IT: decades-old systems are slowing down innovation and integration. In addition, many insurers think in terms of products rather than customers, focusing on policies rather than life situations. What's more, they often lack the ability to integrate themselves into digital ecosystems or orchestrate their own platforms.

Insurance companies need to reinvent themselves – whether as digital service providers, platform partners or even orchestrators of entire ecosystems.

The solution: platforms and ecosystems as game changers

Platforms and ecosystems have already proven that they can bring about decisive change. But what is the situation in Germany? While international markets are already making significant progress, Germany is at a crucial turning point.

Germany: First steps and big ambitions with obstacles

In Germany, ecosystems are emerging around health, mobility and housing. Digital platforms such as Check24 and Verivox bundle insurance products with other services and offer customers a central point of access. However, integration is often not yet comprehensive – many platforms are more like comparison portals than genuine service ecosystems.

Insurers such as Allianz and HUK-Coburg are experimenting with their own platforms or as partners in ecosystems, but the industry as a whole is still in its infancy. The biggest challenge remains consistent digitalisation and openness to cooperation with external partners.

Establishing genuine platform models requires cultural change, API-based IT architectures and the courage to collaborate with external partners.

Japan: Scenario-based innovation and strong life insurance

Japan is the world's third-largest insurance market after the United States and China, with extremely high insurance penetration: over 90 percent of households have life insurance. The ageing population is driving demand for long-term care and pension insurance.

The integration of insurance into digital everyday platforms is particularly innovative: for example, the messenger service Line cooperates with Sompo Japan and offers users over 50 scenario-based insurance products directly in the app – from hiking insurance to legal protection. Insurance is thus becoming a natural part of digital ecosystems, similar to mobile payment or messaging.

Learning factor: Insurance works as an ‘invisible service’ embedded in existing digital environments – simple, contextual and relevant.

UK: Platforms, aggregators and embedded insurance

The British market is a pioneer in comparison platforms and aggregators. Portals such as Comparethemarket, GoCompare and MoneySuperMarket are central points of contact for millions of customers who want to take out or switch insurance policies. The platforms not only bundle policies, but also offer additional services such as contract management, claims management and bonus programmes.

Another trend is embedded insurance: insurance is embedded directly into digital purchasing processes – for example, when buying a car, booking a trip or signing a rental agreement. Major insurers such as Aviva and AXA UK are cooperating with e-commerce platforms, banks and mobility providers to seamlessly integrate insurance products into other services.

Learnign factor: Insurance companies need to be where their customers already are – seamless, integrated and context-relevant.

USA: Platform economy and tech giants setting the pace

The USA, where the ten leading platform companies are growing by almost 20 percent annually, is the epicentre of the platform economy. Insurers play different roles in this ecosystem. Some act as orchestrators by building their own platforms, such as Lemonade with a completely digital customer journey or Progressive with its own comparison portals. Others act as partners by integrating their products into third-party platforms, for example through collaborations with banks, car dealers or tech companies. There are also co-developers who work with tech players to develop new platforms, for example in the smart home or mobility sectors.

US insurers are focusing heavily on data-driven, personalised offerings and using AI to advise customers in real time or process claims automatically.

Learning factor: US role models are showing how insurance is becoming an integrated part of digital lifestyles – embedded, flexible and available at all times.

China: Big tech, mobile ecosystems and advanced digitalisation

China is the world's second-largest insurance market and a pioneer in digital platforms and ecosystems. Tech giants such as Alibaba, Tencent and Baidu dominate not only e-commerce and payments, but also insurance ecosystems. They integrate insurance into comprehensive digital everyday universes, with insurers often becoming mere product suppliers, while customer access and data sovereignty remain with the platform operators.

The number of mobile users of online insurance services has risen to almost 800 million, with mobile channels experiencing a boom during the coronavirus pandemic in particular. Insurance is often offered on a scenario basis, such as return shipping insurance for online shopping or microinsurance for travel and events. Companies such as ZhongAn, Ping An and PICC use AI, big data and cloud technologies for automated processes and personalised offers.

The Chinese authorities are actively promoting the development of InsurTechs and digital platforms, which has led to the market entry of many new online insurance companies. Collaborations are common in order to strengthen online presence and test innovative business models. The market is highly fragmented, although a few large players dominate. Technologies such as AI, cloud and blockchain are standard in product development and claims management.

China's example shows how platforms and ecosystems can integrate insurance into everyday life and radically transform the industry – faster and more comprehensively than in Europe or the US.

Learning factor: Platform thinking is not just about technology – it also involves new roles, business models and partnerships.

Global learnings: What we can learn from Japan, the UK, the US and China

A look at international insurance markets shows how customer centricity, technological innovation and strategic partnerships shape successful markets. Japan, the UK, the US and China have different priorities and offer valuable insights for modern insurance platforms.

Radical customer centricity is key. Successful platforms develop their offerings from the user's perspective and offer intuitive, accessible and flexible products. In Japan and China in particular, insurance is integrated into everyday digital platforms, making it a seamless part of digital life.

Embedded insurance is standard in the United Kingdom, the United States and China: insurance is integrated directly into purchasing processes, which increases conversion rates and strengthens its relevance in everyday life.

A key success factor is the use of data and AI, especially in the US and China, to create personalised offerings and automated processes. Data optimises services in real time.

There is a global trend towards openness and collaboration. Successful insurers operate in larger ecosystems and cooperate with technology companies and start-ups, which promotes innovation and accelerates market launches.

Regulatory frameworks are important because they set the stage for innovation and growth. In China, the balance between innovation and compliance is achieved through proactive government support and clear guidelines. The government promotes InsurTech initiatives and digital platforms by introducing flexible regulations that enable innovation while ensuring consumer protection. Pilot projects and sandboxes* allow companies to test new technologies in a controlled environment, accelerating the introduction of new business models without jeopardising regulatory stability. Technology is becoming a key differentiator. Those who focus on AI, cloud computing and big data are designing more efficient processes and opening up new business models, ensuring sustainable success in international competition.

*Sandboxes in this case are regulatory sandboxes. These are controlled environments in which companies can test new products, services or business models under the supervision of regulatory authorities. These sandboxes make it possible to try out innovations without immediately being subject to full regulatory requirements. This minimises risks while promoting new approaches.

The role of adesso in the platform ecosystem

How does an insurer become part of an ecosystem?

This is exactly where adesso comes in – as a strategic and technological partner for digital transformation. Our services at a glance:

• Strategy consulting: Identification of relevant platforms and ecosystems, development of positioning strategies.
• Technology and integration: API-first architectures, cloud platforms, open interfaces – for maximum flexibility.
• Innovative product development: From policy to service package – customer-centric, data-driven, digital.
• Partner and network management: Establishment and management of collaborations with platform operators, InsurTechs and partners from other industries.
• Our USP: International project experience, in-depth industry knowledge, technological excellence.

Conclusion: Now is the time to actively shape ecosystems

The platform economy is no longer a future scenario, but a reality – worldwide. Those who do not engage with ecosystems today risk becoming mere suppliers of standard products tomorrow. Take advantage of the opportunities offered by platforms and ecosystems to rethink your business model and offer your customers real added value.

Do you have any questions or would you like to know how your company can benefit from the ecosystem approach? Feel free to write to me – I look forward to hearing from you!

Contact us now with no obligation