Other parts of this series:
- Leading L&H insurers are already reaping the benefits of big investments in powerful data analytics solutions
- Smart L&H insurers are using data analytics solutions to boost customer service and deliver impressive experiences
- L&H insurers step up digital innovation to ready themselves for huge market transformation
- Big L&H insurers are signing up partners to bolster their digital innovation programs
The rise in in-house and external innovation is a major new trend sweeping the global life & health insurance industry, according to Accenture’s Quarterly L&H Digital Innovation Tracker. Carriers realize they need to boost their innovation capabilities to meet the rapidly changing demands of the digital economy.
Forward-thinking L&H insurers are accelerating their digital innovation. They’re looking for new ideas and insights that will help them use digital technology to improve their business operations and enhance the services they provide customers. They’re especially eager to identify potentially lucrative new products and markets.
Our Quarterly L&H Digital Innovation Tracker identifies the rise in in-house and external innovation as one of the major new trends sweeping the industry throughout the world.
L&H insurers are typically renowned for their stability and caution. So why is innovation now getting so much attention? The answer’s simple: Far-sighted carriers recognize that digital technology is transforming the insurance industry. And they know that it’s going to keep transforming it. In the digital economy successful organizations will be agile and flexible. Rigid business models and fixed strategies will not be able to respond quick enough to satisfy the rapidly changing demands of digitally-enabled customers. Innovation needs to be built into the fabric of the business.
Several insurers are encouraging digital innovation within their organizations by creating development hubs and portals. These creative environments are intended to encourage, test and nurture new ideas that could improve business performance. Canada’s Manulife, for example, has sited its Lab of Forward Thinking at the new MaRS FinTech cluster in Toronto. Similarly, US carrier MetLife has opened a technology hub in Cary, North Carolina. These facilities will develop new digital insurance products and services.
Argentinian life insurer Colón Seguros has created an Innovation Lab portal to encourage innovation among its agents and brokers. The portal offers on-line information and training. The company plans to further encourage innovation by using the portal to enable its agents and brokers to connect with entrepreneurs outside the country.
A growing number of L&H carriers are looking outside their organizations to foster innovation. They’re partnering tech firms, investing in start-ups and funding developer gatherings. Such innovation initiatives are often quicker and wider in scope than in-house projects.
In my next blog post I’ll discuss some of these initiatives and highlight the growing importance of start-ups in the global insurance industry.
Until then, take a look at this link. I think you’ll find it useful.