New risks emerge all the time. Companies need to be able to identify these risks and anticipate how they will translate into new product needs. Fast, effective innovation—and delivery of the resulting products to market—does not take place in a vacuum. Insurers need to put customers’ demands at the forefront of their innovation efforts. Many insurers interact with thousands of customers daily, and in many different ways (for example, through an agent, online, via a customer care center, or through other avenues).
These interactions should be the source of actionable insights identifying the features and functions of products desired by specific customer segments—products for which those customers are willing to pay a realistic price. These insights are critical to establishing and incorporating product requirements at every stage, from ideation to delivery.
While drawing insights from their customers, insurers also need the ability to react quickly to technology and market changes, especially as they affect emerging risks. For example, when the Ebola epidemic came to prominence in 2014, some insurers were able to adapt business interruption policies to cover this new risk. Leading insurers are also broadening their view; instead of looking only at products, they are looking at new ways to offer services, expertise and partners’ products from their existing platform.
Our recently-published report outlines four key areas of focus, for insurers seeking to improve speed of product development and delivery. To learn more, download Smarter, Faster Product Innovation: Strategic Imperatives for Property & Casualty Insurers (PDF).
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