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