IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v47y2022i4d10.1057_s41288-021-00244-4.html
   My bibliography  Save this article

Implications of bundled offerings for business development and competitive strategy in digital insurance

Author

Listed:
  • Albrecht Fritzsche

    (International University of Rabat)

  • Alexander Bohnert

    (Technical University of Munich (TUM))

Abstract

The ubiquitous availability of interconnected digital devices does not only change the kinds of risks that can be insured and the way insurance companies work, it also facilitates the formation of bundled offerings across different industrial sectors, including insurance as well as other products and services. We identify two distinct patterns in which such bundles change value creation in the insurance industry, which we describe as sales bundles and value bundles. In the former, the objects of insurance become more specific and risks can be estimated more precisely, but insurance becomes an add-on to other offerings at the point of sale. In the latter, insurance is merged with other products and services in comprehensive value bundles in which the exact distribution of responsibilities remains flexible. Although huge effort is required to establish these value bundles and maintain their systemic infrastructures, they create many new opportunities for business development in the insurance industry.

Suggested Citation

  • Albrecht Fritzsche & Alexander Bohnert, 2022. "Implications of bundled offerings for business development and competitive strategy in digital insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(4), pages 817-834, October.
    • Handle: RePEc:pal:gpprii:v:47:y:2022:i:4:d:10.1057_s41288-021-00244-4
    DOI: 10.1057/s41288-021-00244-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41288-021-00244-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41288-021-00244-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Scaringella, Laurent & Radziwon, Agnieszka, 2018. "Innovation, entrepreneurial, knowledge, and business ecosystems: Old wine in new bottles?," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 59-87.
    2. Martin Eling & Mirko Kraft, 2020. "The impact of telematics on the insurability of risks," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 21(2), pages 77-109, April.
    3. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    4. Bernardo Nicoletti, 2016. "Innovation in Insurance," Palgrave Studies in Financial Services Technology, in: Digital Insurance, chapter 1, pages 6-46, Palgrave Macmillan.
    5. James R. Garven, 2002. "On the Implications of the Internet for Insurance Markets and Institutions," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 5(2), pages 105-116, September.
    6. Emanuel Stoeckli & Christian Dremel & Falk Uebernickel, 2018. "Exploring characteristics and transformational capabilities of InsurTech innovations to understand insurance value creation in a digital world," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 287-305, August.
    7. Clarysse, Bart & Wright, Mike & Bruneel, Johan & Mahajan, Aarti, 2014. "Creating value in ecosystems: Crossing the chasm between knowledge and business ecosystems," Research Policy, Elsevier, vol. 43(7), pages 1164-1176.
    8. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
    9. Simon Ashby, 2011. "Risk Management and the Global Banking Crisis: Lessons for Insurance Solvency Regulation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(3), pages 330-347, July.
    10. Antonella Cappiello, 2018. "Technology and the Insurance Industry," Springer Books, Springer, number 978-3-319-74712-5, March.
    11. Simon Fritzsch & Philipp Scharner & Gregor Weiß, 2021. "Estimating the relation between digitalization and the market value of insurers," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(3), pages 529-567, September.
    12. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1, February.
    13. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    14. Martin Eling & Martin Lehmann, 2018. "The Impact of Digitalization on the Insurance Value Chain and the Insurability of Risks," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 359-396, July.
    15. Key Pousttchi & Alexander Gleiss, 2019. "Surrounded by middlemen - how multi-sided platforms change the insurance industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 609-629, December.
    16. Quaas, Martin F. & Baumgärtner, Stefan, 2008. "Natural vs. financial insurance in the management of public-good ecosystems," Ecological Economics, Elsevier, vol. 65(2), pages 397-406, April.
    17. Hans-Gerd Ridder, 2017. "The theory contribution of case study research designs," Business Research, Springer;German Academic Association for Business Research, vol. 10(2), pages 281-305, October.
    18. Antonella Cappiello, 2020. "The Digital (R)evolution of Insurance Business Models," American Journal of Economics and Business Administration, Science Publications, vol. 12(1), pages 1-13, January.
    19. Christian Biener & Martin Eling & Jan Hendrik Wirfs, 2015. "Insurability of Cyber Risk: An Empirical Analysis†," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 40(1), pages 131-158, January.
    20. Senyo, Prince Kwame & Liu, Kecheng & Effah, John, 2019. "Digital business ecosystem: Literature review and a framework for future research," International Journal of Information Management, Elsevier, vol. 47(C), pages 52-64.
    21. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    22. Rahul C. Basole & Shiv S. Patel, 2018. "Transformation Through Unbundling: Visualizing the Global FinTech Ecosystem," Service Science, INFORMS, vol. 10(4), pages 379-396, December.
    23. Matzner, Martin & Büttgen, Marion & Demirkan, Haluk & Spohrer, Jim & Alter, Steven & Fritzsche, Albrecht & Ng, Irene C. L. & Jonas, Julia M. & Martinez, Veronica & Möslein, Kathrin M. & Neely, Andy, 2018. "Digital Transformation in Service Management," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 2(2), pages 3-21.
    24. Charles E. Phelps, 1978. "Illness Prevention and Medical Insurance," NBER Chapters, in: The Economics of Physician and Patient Behavior, pages 183-207, National Bureau of Economic Research, Inc.
    25. Griliches, Zvi, 1998. "R&D and Productivity," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226308869, April.
    26. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    27. Kumar Rakesh Ranjan & Stuart Read, 2016. "Value co-creation: concept and measurement," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 290-315, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabian Schueler & Dimitri Petrik, 2022. "Objectives of platform research: A co-citation and systematic literature review analysis," Papers 2202.08822, arXiv.org.
    2. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    3. Martin Eling & Davide Nuessle & Julian Staubli, 2022. "The impact of artificial intelligence along the insurance value chain and on the insurability of risks," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(2), pages 205-241, April.
    4. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    5. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    6. Cenamor, Javier, 2021. "Complementor competitive advantage: A framework for strategic decisions," Journal of Business Research, Elsevier, vol. 122(C), pages 335-343.
    7. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    8. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    9. Uzunca, Bilgehan & Sharapov, Dmitry & Tee, Richard, 2022. "Governance rigidity, industry evolution, and value capture in platform ecosystems," Research Policy, Elsevier, vol. 51(7).
    10. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    11. Iván Sosa & Óscar Montes, 2022. "Understanding the InsurTech dynamics in the transformation of the insurance sector," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(1), pages 35-68, April.
    12. Antonella Cappiello, 2020. "The Digital (R)evolution of Insurance Business Models," American Journal of Economics and Business Administration, Science Publications, vol. 12(1), pages 1-13, January.
    13. Boris Otto & Matthias Jarke, 2019. "Designing a multi-sided data platform: findings from the International Data Spaces case," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 561-580, December.
    14. Yingying Zhang-Zhang & Sylvia Rohlfer & Jay Rajasekera, 2020. "An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    15. Erik Hartigh & Claire C.M. Stolwijk & J. Roland Ortt & L. Matthijs Punter, 2023. "Configurations of digital platforms for manufacturing: An analysis of seven cases according to platform functions and types," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    16. Siobhan O'Mahony & Rebecca Karp, 2022. "From proprietary to collective governance: How do platform participation strategies evolve?," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 530-562, March.
    17. Martin Eling & Irina Gemmo & Danjela Guxha & Hato Schmeiser, 2024. "Big data, risk classification, and privacy in insurance markets," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 49(1), pages 75-126, March.
    18. Maik Dehnert, 2020. "Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1071-1113, November.
    19. Meier, Samira & Rodriguez Gonzalez, Miguel & Kunze, Frederik, 2021. "The global financial crisis, the EMU sovereign debt crisis and international financial regulation: lessons from a systematic literature review," International Review of Law and Economics, Elsevier, vol. 65(C).
    20. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:47:y:2022:i:4:d:10.1057_s41288-021-00244-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.