17 Sep The insurance innovation imperative
Insurers and intermediaries know that innovation has the potential to enhance their current business and operating models. They know that they need to innovate faster than their competitors to defend and grow their business. But with disruptors already banging on their doors, our survey suggests that too many in the insurance world are focused on operational innovation rather than strategic – growth-oriented – innovation.
That insurers and intermediaries understand the direct link between innovation and growth is undeniable. “In order for my business to be successful, in order to deliver increased value to my customers, in order to increase my top and bottom line, or
to generate shareholder value, we need to do things differently. We need to be creative. We need to innovate,” noted John Geyer, Senior Vice President of Metlife’s Innovation Program.
Most insurance executives agree. In fact, more than eight-in-ten respondents to our survey said they believe their organization’s future success to be closely tied to their ability to innovate ahead of competitors. The potent combination of data and digital is also driving increased innovation within the sector.
Interestingly, larger organizations (those with revenues of more than US$5 billion) were more likely than their smaller peers to link innovation to success in this new world of opportunity. and respondents from the Property & Casualty (P&C) sector and Composites reported being more focused on innovation-led growth than their life & Health peers.
Many organizations believe that improved use of technology will help drive greater innovation and growth. More than half of our survey respondents say that digital technology and its integration into business objectives is one of the three greatest opportunities for growth in their sector; a quarter of respondents told us that digital technology is the single biggest opportunity for growth over the next 2 years.
