Post on 14-Feb-2017
ARE YOU IN TOUCH WITH YOUR INNOVATIVE SIDE?WHY (AND HOW) INNOVATIVE INSURERS DO IT BETTER
Based on research byFIS and Raconteur
TO INNOVATE OR NOT TO INNOVATE?
INNOVATION MATTERS IN THE DIGITAL AGE
Nearly 80% of insurance companies agree they need to innovate
86%80%
86% believe they will lose market share
… and if they don’t
SOUNDS SERIOUS. BUT WHY?
Drive competitive advantage Increase customer satisfaction
TOP TWO REASONS TO INNOVATE
57%58%
That makes perfect business sense.
BUT (and yes, it’s a BIG but) …
of insurers say they face obstacles to delivering innovation.
5
A massive
WHAT CAN STOP INNOVATION?
Ineffective organizational structure
Inadequate planning
TOP THREE INNOVATION KILLERS
51%53% 54%
Financial and resource constraints
PLUS the complexity of legacy systems stops 75% replacing them with new technology.
27%
THERE’S ALSO A TECHNOPHOBIC TENDENCY TO TRAIL BEHIND OTHER SECTORS
59% 14%
C-LEVEL
Less innovative than others
As innovative as others
More innovative than others
More than a quarter of C-level insurance executives agree that insurance is less innovative than other financial service sectors.
But it’s not all doom and gloom. Far from it …
A NEW BREED OF INNOVATIVE INSURERIS LEADING THE WAY FORWARD.
MEET THE INNOVATIVE INSURER
Natural born innovators and digital disruptors aren’t necessarily the smallest and most agile, but they are flexible in their thinking.
FORGET YOUR PRECONCEPTIONS
That said, it’s actually the LARGEST FIRMS that perceive themselves to be the most innovative – possibly because they have the resources to invest in disruptive fintech.
LIFE INSURERS ARE CONFIDENT INNOVATORS
Regardless of size or years in business, life insurance companies have a greater opinion of their innovatory prowess than non-life insurers and re-insurers.
“In the current economy, where digital technologies have a major influence, life insurance companies are successfully adapting to the new demands of the marketplace and moving quickly to find new customers, deliver new products and open new markets.”
Yi Chen, equity analyst Ping An Insurance
Group Company of China Say they are more innovative than others
20%32% 24%
DIRECT INSURER – LIFE
REINSURER DIRECT INSURER – NON-LIFE
WAKING UP TO NEW DIGITAL POSSIBILITIES
THE CLOUD HAS A SILVER LINING
More and more insurance companies are evolving their operations to embrace innovative cloud-based technologies – especially for managing big data and complex actuarial calculations.
Not under discussion Internal barriers First thoughts
Team discussions Prototyping Already implemented
CL
OU
D S
ER
VIC
ES
4% 15%18%3%9% 51%
9% 17%23%4%11% 35%
11% 17%17%5%18% 31%
24% 20%16%8%4% 28%
14% 16%12%6%29% 23%
8% 4%24% 48%
Note: Due to rounding some totals do not equal 100%.
16%
NORTH AMERICA
EUROPE
ASIA PACIFIC
LATIN AMERICA
AFRICA
MIDDLE EAST
MANAGED SERVICES ARE THE OPERATING MODEL OF THE FUTURE …More than half of insurers agree they will adopt some kind of managed service by 2020.
“While cloud services are now more widely used to deliver hosted solutions and streamline business processes, they have their own limitations and very much need support from managed services on a higher all-encompassing IT level.”
head of IT, Netherlands-based life insurer
TO INNOVATE OR NOT TO INNOVATE?
INNOVATIVE INSURERS ARE IN TOUCH AT EVERY LEVEL
Insurers need to achieve greater levels of connectivity and collaboration between different functions.
“Most collaboration now and in the future will happen in a digital way, with departments using smart solutions for real-time communication.”
senior executive, Liverpool Victoria, U.K.
40
30
20
10Human
resourcesUnderwriting Claims Sales and
marketingPolicy
administration/operations
Legal Investments/asset manager
Customer service
Finance/accounting
IT
Current Potential
ARE YOU IN TOUCH WITH YOUR INNOVATIVE SIDE?Or could you do better?
Learn more about unleashing your inner pioneer by reading our full insight report
The Innovative Insurerempower.fisglobal.com/innovative-insurer-insight-report