As discussed in my previous post, product innovation is a critical component of stability and smart growth. Many insurers, however, approach this essential capability as a sprint, focusing all their energy towards making a quick impact on the market. While sprints are useful for reaching short-term goals, they are not sustainable over time. As a result, insurers that adopt this “sprint mentality” tend to become trapped in an endless cycle of market reactivity, diminishing their potential for consistent market leadership and profitable growth.
Being able to execute fast product rollouts based on current or projected marketplace demand is essential. But since endless sprints are not sustainable, a dual focus is required; insurers should also view product innovation as a long-term strategy, plotting out just how and when they will address the market and their own growth.
Once this path is identified, insurers can more dynamically determine resource allocation, timing and the supporting processes and technologies critical to achieving their goals. This smarter approach to product innovation helps insurers achieve what they sought through product changes in the first place — profitable growth and a sustainable leadership position in the marketplace.