Innovation

Innovating Insurance

Share this post:

A few weeks ago, I mentioned an upcoming IBM Institute for Business Value study, and now it is available: Innovating insurance: Lessons from the world’s leading innovators. You can check it out here.

Insurance has traditionally been slow to innovate. Or if you prefer a more liberal interpretation of innovation – as we did in our 2010 study “Solving the innovation puzzle” – innovation in insurance has been incremental and internal rather than radical and disruptive. The insurance industry has always enjoyed a set of protective characteristics that have inoculated it from greater disruption:

  • Regulation
  • Scale and the law of large numbers
  • Personal relationships
  • General customer inertia

The question today is whether these characteristics, together with incremental innovation, are enough?

In our new study, my colleagues Lynn Kesterson-Townes, Anthony Marshal and Indranil Nath argue that the many micro-disruptions happening right now along the insurance value chain will add up to stronger industry dislocation, and we show how it is happening in other formerly protected industries. Based on a survey of more than 1,000 C-Suite executive globally, we then examine how the world’s leading innovators differentiate themselves to be the ones reshaping rather than reacting to disruption.

Hope you have an interesting read, and comments, as always, welcome.

Learn more about innovating insurance & explore IBM industry solutions at http://ibm.com/insurance

Add Comment
No Comments

Leave a Reply

Your email address will not be published.Required fields are marked *

More Innovation Stories

Taking off: How Drones Are Disrupting Insurance

The term disruptive technology is overused, and maybe even used too loosely and too frequently. (These days, I often wonder if a technology discussion is possible without using the term “disruptive.”) So it’s important to clarify precisely what we mean when using the term “disruptive” in regard to technology: disruptive technologies create new markets, new […]

Continue reading

What will it take to reinvent financial services?

We’ve been long saying that financial services firms today are undergoing a radical transformation. From pressures around data security, a constantly evolving regulatory environment, and disruptive new players (insurtechs)—all amplified by cost pressures and diminishing margins—it’s clear that business models need to quickly adapt. To further complicate the landscape, customer expectations continue to evolve, as […]

Continue reading

Turbo-charged underwriting – You bet-cha!

A few years ago, a couple of colleagues and I penned a white paper on Integrating the value of Data in Underwriting. It was slightly ahead of its time, but it underscored a central need for insurance within the burgeoning era of “big data.” It provoked the thought that this new era will excel when […]

Continue reading