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Your email address will not be published.Required fields are marked *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

Will autonomous automobiles drive auto insurers away?

In the last year, we’ve seen a number automobile manufactures take big steps towards releasing widely available, fully autonomous vehicles. With the impending fleet of autonomous vehicles on the road, it means we’re likely to see a massive drop in automobile accidents. Having worked with Auto Insurance Companies in the U.S. and Australia, there is […]

Continue reading

Insurance APIs: The new insurtech embrace

The insurance industry is rarely noted for innovation. The traditional insurance business model has been in place for centuries, founded on stability and consistency of customer relationships based on sustained trust. Indeed, in 2007 the Competitive Enterprise Institute concluded that, “Since…1959, the [insurance] industry has not introduced a single entirely new property and casualty insurance […]

Continue reading

IBM and MetLife partner for a groundbreaking IBM Insurance Platform

From the introduction of the mainframe, to pioneering efforts in artificial intelligence, IBM has consistently developed technologies that are relevant to the insurance industry. Today, we announce another milestone for the insurance industry — the IBM Insurance Platform with initial focus on end-to-end core processing for group benefits and to be offered “as a Service” on the […]

Continue reading

Artificial Intelligence and Machine Learning – Is this the Next Big Disruption in the Insurance Industry?

Rapid digitization and changing customer demographics are putting immense pressure on the insurers today and making them rethink the way they run the insurance industry. Millennials, who are the true digital generation, have already taken over the baby boomers and now make up a quarter of the UK population as per the Inkling Millenial Report […]

Continue reading