Accenture’s research on innovation also indicates the solution to insurers’ innovation woes. It is this: across all industries, companies that have a formal innovation system in place are more satisfied with the business outcomes of that innovation.
This correlation is somewhat less evident when one considers insurance on its own, but it is there, nonetheless. As seen in the following diagram, it is particularly evident in three areas. In each case, more of those insurers with a formal system in place are satisfied than those with only an informal system:
Even more hopeful, 65 percent of insurers who are very or extremely dependent on innovation have a formal system of innovation in place; and, among insurers that have an effective, holistic approach to new product or service development, 30 percent have a formal system of innovation in place.
In short, all the research seems to indicate that having a formal system of innovation in place makes for more effective innovation. Companies that see the need to integrate innovation into the way they do business—and I would suggest that this is only way to prosper in the insurance market of the future—should therefore implement such a formal innovation system.
Next time, we’ll explore the six characteristics of a formal system for successful innovation.